The United States and China’s Economic Working Group convened in Beijing on Monday and Tuesday to address trade worries and larger economic matters.

The third meeting took place since September of last year and included high-ranking representatives from the U.S. Department of Treasury and China’s Ministry of Finance, along with other agencies.

On Tuesday, the Treasury released a statement stating that officials from the United States and China had a conversation regarding their respective views on the domestic macroeconomic situation. They also discussed common concerns including debt in low-income and emerging economies.

American officials also expressed their worries regarding China’s excessive industrial capacity and its impact on employees and businesses in the United States.

Overcapacity is when China makes more investments into their manufacturing industry, resulting in production levels surpassing domestic demand.

In December, the Atlantic Council conducted an analysis which stated that these trade flows will worsen the already strained trading relations with economies such as the United States and the EU. This is because these economies are also prioritizing their domestic industries and creating jobs by producing similar products.

However, the U.S. delegation expressed a desire to maintain a strong and mutually beneficial economic partnership, rather than completely separating economies. They aim for a fair competition for American businesses and employees.

According to Chinese state media, officials from the Ministry of Finance expressed their worries about the U.S. raising tariffs and implementing “two-way investment restrictions and sanctions against Chinese companies.”

In September 2023, U.S. Treasury Secretary Janet Yellen and Chinese Vice Premier He Lifeng formed a working group with the goal of preserving a positive economic partnership between the United States and China in light of growing economic conflicts.

The most recent gathering took place in China, marking the first meeting of 2024.

In November, Yellen and He had a meeting to discuss trade.

The team decided to reconvene in April.