Blinken’s visit, his second to the country in the space of 12 months, comes as the United States and China are stepping up official contacts in an effort to stop relations deteriorating further due to their ongoing disputes over issues such as trade and Taiwan.

State Department spokesperson Matthew Miller said after the meeting: “In a constructive and candid exchange, [Blinken] raised concerns about PRC [People’s Republic of China] trade policies and non-market economic practices and stressed that the United States seeks a healthy economic competition with the PRC and a level playing field for US workers and firms operating in China.”

US trade report keeps China on priority watch list as Blinken visit begins

The Chinese commerce ministry said on Thursday that accusations about overcapacity are “unreasonable”, and warned they may damage business confidence and global green development.

Chen, who is also a member of the Chinese Politburo, told Blinken in the meeting that Shanghai is home to more than 8,000 American companies.

Chen said that stable relations between the two countries “have not only advanced our cooperation and exchange in all different aspects” but also “help address global challenges and help promote world peace and development”, according to a transcript of his opening remarks by the State Department.

“So whether China and the US choose cooperation or confrontation, it affects the well-being of both peoples of nations and also the future of humanity,” he added.

In a separate statement released by the Shanghai government, Chen said the city will continue to help foreign investors and support cooperation.

“We will always adhere to the direction of marketisation, rule of law and internationalisation, continue to optimise the business environment, provide efficient and convenient services, and support all types of enterprises to continue to develop in Shanghai and achieve win-win development.”

Speaking to students at New York University’s campus in Shanghai later in the day, Blinken said the relationship between the two countries is one of the world’s most “consequential” and “complicated” but emphasised the importance of communication.

He said more than 100,000 new visas had been granted to Chinese students last year, adding that both countries are working to ensure students feel welcome to study in the other country.

Chinese ambassador to the US Xie Feng said in January that more than a dozen Chinese students with valid visas were being denied entry to the US every month after interrogation by immigration officials.

Blinken also met members of the American business community at the American Chamber of Commerce in Shanghai on Thursday afternoon, including Shanghai chamber chairman Allan Gabor and president Eric Zheng.

“US companies in China appreciate the US government’s efforts to continue engaging with China, which will be of great benefit to both sides,” Gabor said in a statement.

Following that meeting Blinken travelled on to Beijing, where he was due to meet academics later in the day.

On Friday he is expected to meet his Chinese counterpart Wang Yi, and possibly President Xi Jinping as well.

US is ‘stubbornly’ trying to contain China, Beijing says ahead of Blinken visit

The talks are expected to cover some of the most challenging issues in their bilateral relations, including trade, Taiwan, Ukraine,and the Middle East.

The Chinese embassy in Washington has warned that the move “puts the US on the wrong side of the principles of fair competition and international trade rules”.