By Andrea Shalal
ZURICH (Reuters) - U.S. Treasury Secretary Janet Yellen agreed with Chinese Vice Premier Liu He to enhance communication about macroeconomic and financial issues during a "candid, substantive, and constructive" meeting in Zurich on Wednesday, the Treasury said.
In a statement, the Treasury said both sides agreed to enhance cooperation on climate finance on a bilateral and multilateral basis, such as within the United Nations, Group of 20 economies and APEC.
"While we have areas of disagreement, and we will convey them directly, we should not allow misunderstandings, particularly those stemming from a lack of communication, to unnecessarily worsen our bilateral economic and financial relationship," Yellen said at the start of the meeting.
Liu said both countries need "serious communication" and coordination on issues including climate change and the economy, and that he was ready for an in-depth exchange.
"We do believe that we have to always bear in mind the bigger picture, try to manage our differences appropriately and seek common ground," Liu said, speaking through an interpreter. "In this way, hopefully we can work together to maintain the overall stability of Chinese-U.S. relations."
U.S. President Joe Biden and Chinese President Xi Jinping pledged to increase communication when they met in Indonesia in November.
"Both sides agreed it is important for the functioning of the global economy to further enhance communication around macroeconomic and financial issues," the Treasury said after Yellen and Liu met.
"Secretary Yellen also raised issues of concern in a frank exchange of views," it added. "She looks forward to travelling to China and to welcoming her counterparts to the United States in the near future."
A senior Treasury official said that, during the meeting, which lasted nearly three hours, Yellen and Liu agreed that both countries could take steps to avert recessions in their own economies, and the two delegations had a productive discussion about sovereign debt issues, food security and energy.
On economic prospects, Chinese officials were aware of financial risks posed by the property sector but were optimistic about resuming closer to normal growth, the official said of the meeting, the first in person since Yellen became secretary.
The China side expressed concern over U.S. economic, trade and technological policies towards China and its hope that the U.S. will pay attention to how such policies were affecting both countries, China's Ministry of Commerce said in a statement.