Global Courant 2023-04-21 00:35:33
A growing China is in the interest of both countries, as long as it adheres to global rules, says Yellen.
The US is seeking “constructive and fair” economic ties with China, but will protect its national security interests and push back against Chinese actions to dominate foreign competitors, Treasury Secretary Janet Yellen said.
Speaking at Johns Hopkins University’s School of Advanced International Studies on Thursday, Yellen laid out the main goals of President Joe Biden’s administration for what she called an “essential” economic relationship between the world’s two largest economies, now China is taking a more confrontational stance towards the United States and its allies.
“Our relationship is clearly at a tense time,” Yellen said. “My goal is to be clear and honest, cut through the noise and address this essential relationship, based on down-to-earth realities.”
She said she planned to travel to Beijing “at the right time” to meet her new Chinese counterparts to “responsibly” manage the relationship, but the finance ministry did not provide details on the timing of any trip.
Yellen made her comments amid rising tensions and pessimism in the US-China relationship over national security issues including Taiwan, Russia’s war in Ukraine, increasing US export bans on advanced technologies and China’s state-led industrial policies.
International Monetary Fund Director Kristalina Georgieva warned last week that such tensions and supply chain friend-shoring could lead to a new Cold War that would hamper global growth.
Yellen was unapologetic on Thursday about the US’s position as the world’s largest and most dynamic economy, leading in areas ranging from wealth to technological innovation, but said a growing China is in both countries’ interests as long as it adheres to the worldwide rules.
She focused on China’s “no borders” partnership with Russia, calling it “a worrying indication that it doesn’t mean business” about ending Russia’s war on Ukraine.
“It is essential that China and other countries do not provide material support or assistance to Russia in evading sanctions,” she said, warning that the consequences of any violations would be “serious”.
‘Healthy’ competition
Yellen said the Biden administration’s economic priorities with regard to China include safeguarding US national security interests, promoting “healthy” competition and, where possible, working together on global issues such as climate change, debt relief and macroeconomic stability.
But she said Washington would clearly express concern about China’s increased support for state-owned and domestic private companies to dominate foreign competitors, as well as its “aggressive” efforts to acquire new know-how, including through intellectual property theft and ” other unauthorized means”.
Yellen also said the US will not compromise on national security interests and democratic values, even if they enforce economic compromises. She emphasized that Washington’s actions against China were motivated solely by these concerns, and that the goal was not to gain an economic competitive advantage.
At the same time, she said the Biden administration was not looking for a “winner-take-all” competition, believing that healthy economic competition with fair rules could benefit both countries over time.
“Sports teams perform at a higher level when they consistently face top rivals. Companies produce better and cheaper goods when they compete for consumers,” she said.
She also urged China to honor its pledge to work with the US on macroeconomic issues and pressing global challenges such as climate change and debt.
“More needs to be done,” Yellen said. “We call on China to honor its commitment to cooperate with us on these issues – not as a favor to us, but out of our shared duty and obligation to the world.”
(TagsToTranslate)Economy
