The US wants a “constructive and fair” economic relationship with China, says Yellen

The United States seeks economic ties “constructive and fair” with China, but will protect its national security interests and oppose Beijing’s actions to dominate its foreign competitors, the Treasury secretary said Thursday, Janet Yellen.

In a speech at the Johns Hopkins University School of Advanced International Studies, Yellen set out the main objectives of the Government of Joe Biden for what he described as an economic relationship “essential” between the two largest economies in the world, at a time when China takes a more belligerent stance towards the United States and its allies.

“Our relationship is clearly at a tense time.“, he pointed Yellen, which has said it still hopes to visit Beijing to meet its new Chinese economic peers. “My goal is to be clear and honest, cut through the noise, and talk about this essential relationship, based on sober realities.”.

Yellen He affirmed that the United States continues to be the largest and most dynamic economy in the world, a leader in areas ranging from wealth to technological innovation, and considered that a growing China benefits both countries, as long as it respects global rules.

He also criticized the association “unlimited” of China with Russia, calling it “worrying indication that he is not taking himself seriously” end the war in Ukraine.

“It is essential that China and other countries do not provide Russia with material support or help to evade sanctions.he said, warning that the consequences of any violation would be “severe.”

Yellen said that the economic priorities of the Government of Biden with respect to China included ensuring the national security interests of the United States, fostering competitive “fury” and cooperate, to the extent possible, on global issues such as climate change, debt relief and macroeconomic stability.

But Washington would also communicate its concern about the growing support of China to state companies and national private companies to dominate foreign competitors, as well as for their “aggressive” efforts to acquire new technical knowledge, including through the theft of intellectual property and “other illicit means”.

He also urged China to keep its promise to work with the United States on macroeconomic issues and pressing global challenges such as climate change and debt.

“more needs to be done“, said Yellen. “We call on China to honor its promise to work with us on these issues, not as a favor to us, but out of our joint duty and obligation to the world.”.

Source: Reuters