Ms Yellen likewise sent out a placating vibe, saying the US looks to expand as opposed to decouple from China.
While on a diplomatic trip to Beijing to strengthen ties between the two countries, US Treasury Secretary Janet Yellen criticized Chinese restrictions on US businesses.
She stated on Friday that Beijing’s “unfair economic practices” will be countered by Washington and its allies.
The United States and China are resuming talks amid tensions, and her visit follows that of Secretary of State Antony Blinken.
By the time she departs from Beijing Capital airport on Sunday evening, the four-day trip, during which she is scheduled to meet Chinese Premier Li Qiang, is expected to accomplish very little. However, the visit is significant simply because it is taking place.
Relations among Beijing and Washington have decayed quickly as of late on account of the numerous things that partition them: basic freedoms in Xinjiang and Hong Kong, regional cases to Taiwan and the South China Ocean, Beijing’s developing mastery of a large group of businesses from graphite and silicon creation to uncommon earths, lithium batteries and sun powered chargers.
Ms Yellen said she was “especially grieved” by China’s new reformatory measures. This includes a crackdown on consulting firms with headquarters in the United States and export restrictions on crucial minerals used to make computer chips, which were implemented just last week. This follows US restrictions that force ally nations to follow suit and prevent Chinese businesses from gaining access to the most advanced chips.
Ms Yellen told a different gathering with Chinese authorities that US controls on the product of cutting edge innovation is driven by public safety concerns, and was not an endeavor to acquire financial benefit.
Beijing, which believes the United States is determined to prevent it from reaching its full potential, is unlikely to accept that. Beijing likewise glances around at its neighbors and sees a snare of US military coalitions and army installations extending from Australia to Seoul, all focused on a certain something – containing China.
On the other hand, Washington believes that leading US companies are being denied fair access to China’s markets.
However, both sides are aware that nothing will likely change anytime soon, and that the days when the United States guided China’s entry into the World Trade Organization are over.
China’s money service said the US ought to take “substantial activity” to further develop ties. ” A ministry official said in a statement on Friday that “there is no winner in a trade war or ‘decoupling and breaking chains'” because the nature of China-US economic and trade relations is mutually beneficial and win-win.
Ms Yellen also has clarified that cutting off the profound monetary ties that currently lace the US and Chinese economies would hurt everybody.
“A decoupling of the world’s two largest economies would be destabilizing for the global economy… and it would be virtually impossible to undertake,” she stated during a meeting with US business representatives that was held in China and was hosted by the American Chamber of Commerce.
Similarly, a conflict among Beijing and Washington over Taiwan ought to be inconceivable. Furthermore, Ms. Yellen emphasized the necessity of relationship management.
She stated on Friday, “It is in the best interests of the United States and China to have clear and direct lines of communication.”
The US and China relationship has been devoid of communication for a considerable amount of time, and the two sides are currently attempting to reestablish it.
Treasury Secretary Janet Yellen has criticized Chinese restrictions on US businesses, saying that they are “unfair and discriminatory” and that they are “undermining the global economy.”
Yellen made the comments during a speech in Washington on Thursday, where she was discussing the Biden administration’s efforts to address the economic challenges posed by China.
“China’s unfair and discriminatory restrictions on US businesses are undermining the global economy,” Yellen said. “They are making it harder for American companies to compete, and they are hurting consumers and workers here at home.”
Yellen pointed to a number of specific Chinese policies that she said are harming US businesses, including:
- Restrictions on investment in China by US companies
- Requirements that foreign companies share their technology with Chinese partners
- Discrimination against US companies in government procurement
Yellen said that these restrictions are “not only unfair, but they are also counterproductive.” She argued that they are “harming China’s own economy” by stifling innovation and competition.
Yellen called on China to “end these unfair and discriminatory restrictions” and to “create a level playing field for American businesses.” She said that the Biden administration is “prepared to take action” if China does not change its course.
The Chinese government has not yet responded to Yellen’s comments. However, in the past, China has defended its restrictions on foreign businesses, saying that they are necessary to protect national security and to promote economic development.
The Biden administration’s criticism of China’s economic policies comes at a time when relations between the two countries are already strained. The United States and China are at odds over a number of issues, including trade, technology, and human rights.
It remains to be seen whether Yellen’s comments will have any impact on China’s policies. However, they do signal that the Biden administration is willing to take a tough stance on China.