U.S Treasury Secretary Janet Yellen has criticised China for its recent “punitive” steps against American firms, as well as new export limits on several essential minerals.
Yellen, who arrived in Beijing on Thursday, said the developments highlighted the importance of “resilient” and diverse supply chains, and she warned that the US and its allies will fight back against China’s “unfair economic practices.”
Yellen delivered the statements to the American Chamber of Commerce in China (AmCham) following “substantive” conversations with former Chinese economy czar Liu He, a close confidante of President Xi Jinping, and outgoing top Chinese central banker Yi Gang, according to a Treasury official. She is scheduled to meet with Premier Li Qiang later on Friday.
Yellen’s trip is part of a flurry of visits aimed at calming tensions between Washington and Beijing that escalated after the U.S. military shot down a Chinese government balloon over the United States and amid increasing strains over export controls.
No major breakthroughs are expected, with officials from both sides accepting that safeguarding national security interests now trumps deepening economic ties.
China hopes the U.S. will take “concrete actions” to create a favourable environment for the healthy development of bilateral economic and trade ties, China’s finance ministry said in a statement on Friday.
“No winners emerge from a trade war or from decoupling and ‘breaking chains’,” the statement added.
U.S. firms in China hope Yellen’s visit will ensure trade and commercial lanes between the two economies remain open, regardless of the temperature of geo-political tensions.
The U.S. diplomatic push comes ahead of a possible meeting between President Joe Biden and Xi as soon as September’s Group of 20 Summit in New Delhi or the Asia-Pacific Economic Cooperation gathering scheduled for November in San Francisco.
Yellen said she came to work toward a “stable and constructive relationship” between the two countries, while making clear that Washington will act to protect its national security interests and human rights.
Regular exchanges could help both countries monitor economic and financial risks at a time when the global economy was facing “headwinds like Russia’s illegal war in Ukraine and the lingering effects of the pandemic,” Yellen added.
–
Yellen stated that the US was still analyzing new Chinese export curbs on gallium and germanium, essential minerals used in technology such as semiconductors, but that the action highlighted the importance of “resilient and diversified supply chains.”
Yellen emphasized that China’s massive and growing middle class provided a large market for American goods and services, and that Washington’s targeted moves against China were motivated by national security concerns.
Related posts:
Janet Yellen sworn in as first female U.S Treasury Secretary
Treasury Secretary, Yellen advocates increased cooperation between U.S, China on climate finance
PENGASSAN issues final warning to oil & gas companies over unfair labour practices
Biden unveils economic team, names Wally Adeyemo as deputy treasury secretary
U.S Senate confirms fmr treasury secretary, Jacob Lew as Israeli Ambassador
Trump won’t rule out second Yellen term, signaling drift to the mainstream
Yellen lifts dollar as global markets await Trump tax plan
Canadian refugee ruling unfair to Nigerians – Immigration lawyers
