A delegation of senior officials from the Biden administration is set to travel to Shanghai this week for a series of high-level meetings aimed at maintaining the economic relationship between the United States and China amidst escalating trade tensions. The meetings, scheduled for Thursday and Friday, will focus on discussions related to economic and financial stability, capital markets, and efforts to combat the flow of fentanyl into the United States. The U.S.-China Financial Working Group, established last year, will convene the talks. Despite improved communication between the two countries, disagreements persist over industrial policy and China's dominance in green energy technology. The Biden administration has recently imposed new tariffs on various Chinese imports and restricted American investments in Chinese sectors deemed to pose national security threats. Led by Brent Neiman, the Treasury Department's assistant secretary for international finance, the U.S. delegation will include officials from the Federal Reserve and the Securities and Exchange Commission. They are expected to engage with senior Chinese officials, including the People's Bank of China's deputy governor, Xuan Changneng, to address financial stability, cross-border data issues, and private-sector efforts to advance transition finance. The Biden administration has been urging China to curb the export of chemicals used in the production of fentanyl, with recent signs of progress as China announced new restrictions on three of these chemicals. However, other economic issues such as China's industrial overcapacity in clean-energy products and the imbalance in its economy remain contentious topics. This week's meetings mark the fifth session of the financial working group and the second time officials have gathered in China. Both countries have been conducting joint financial shock exercises to coordinate responses to potential crises affecting international banking and insurance systems.