Janet Yellen to warn China against ‘unfair’ economic practices

Treasury Secretary Janet Yellen is willing to warn China that the United States will continue to resist its “unfair” economic policies, but will add that Washington is not trying to “stifle” the Chinese economy with national security measures.

In a speech on Thursday, Yellen is expected to call for a “constructive and fair” economic policy. relationship with china while ties between the powers are mired in their worst state in decades.

His comments come as Washington tries to restart efforts to stabilize the relationship that went off the rails when a alleged Chinese spy balloon flew over the United States two months ago.

However, while Yellen Calling for a “healthy economic relationship” with China and outlining the need for cooperation on issues ranging from macroeconomics to climate change, his speech will have a strong focus on Washington’s areas of concern.

She will say that the United States will continue to ensure its and its allies’ national security interests and protect human rights, and push back the PRC when necessary.

“We will clearly communicate our concerns to the PRC,” Yellen plans to say, adding: “Our specific actions may have economic impacts [but] they are motivated solely by our concerns about our safety and values. Our goal is not to use these tools to gain a competitive economic advantage.”

Referring to export controls related to semiconductors and other measures the Biden administration has taken, Yellen will say that safeguarding certain technologies from the Chinese military is in the “vital national interest.”

“[But] let me be clear, these national security actions are not designed. . . stifle China’s economic and technological modernization,” he will say.

US and Chinese officials agree that the relationship has deteriorated to its lowest level since they normalized in 1979, with tensions rising sharply over Taiwan as the US grows more concerned about military activity. assertive of China throughout the country.

More recently, the US has become anxious about apparent Chinese moves to target companies, including Micronthe Idaho-based memory chip maker.

Beijing believes Washington is trying to stifle its rise by limiting its ability to develop a high-end semiconductor industry and says the US is helping Taiwan resist its long-term plan to control it.

Chinese officials are also privately frustrated that their US counterparts weave critical language into speeches ostensibly trying to improve relations. In his remarks, however, Yellen will say that both countries “need to be able to discuss difficult issues frankly.”

When Joe Biden and Xi Jinping met at the G20 in November, the presidents agreed to efforts to establish a “floor” in the relationship. They discussed a series of high-level exchanges beginning with Secretary of State Antony Blinken’s visit to Beijing in February.

But that plan was derailed when the spy balloon appeared over the US and Blinken abruptly canceled what would have been the first visit to China by a Biden administration cabinet official in several years.

beijing has he resisted rescheduling the visit out of concern that the FBI may soon publish a report on the globe. But in a rare positive sign, two top commerce department officials, including China expert Elizabeth Economy, traveled to Beijing this month to discuss a possible visit later this year by commerce secretary Gina Raimondo.

In her speech, Yellen will also reject suggestions that the US is in decline, in an apparent indirect reference to statements by officials in China that “the east is growing, while the west is declining.”

“Pronouncements about America’s decline have been around for decades. But they have always been proven wrong,” Yellen is expected to say.

The former Federal Reserve chairman will also emphasize that countries must work together on critical global issues despite their differences.

“That’s what the world needs from its two largest economies.”

Continue Demetri Sebastopulo On twitter

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