Yellen Urges China to Adopt Market Reforms, Says US Not Decoupling
In a speech on Friday at the American Chamber of Commerce (AmCham) in China, US Treasury Sec. Janet Yellen called for market reforms in China and criticized the country's recent tough actions against US companies and new export controls on some critical minerals.
Facts
- In a speech on Friday at the American Chamber of Commerce (AmCham) in China, US Treasury Sec. Janet Yellen called for market reforms in China and criticized the country's recent tough actions against US companies and new export controls on some critical minerals.1
- Yellen, who arrived in Beijing Thursday, said China's recent economic moves underscored the need for "resilient" and diverse supply chains, adding that "The US and its allies will fight back against unfair economic practices."2
- Discussing trade relations between their countries on Friday, Yellen told Chinese Premier Li Qiang that the US is seeking a healthy win-win situation in which both countries benefit.1
- Yellen also told Li Qiang that Washington and Beijing must cooperate on global issues, even though relations between the two nations are at their lowest in decades.3
- Meanwhile, China’s Finance Ministry expressed hope that the US would take "concrete actions" to fortify bilateral economic and trade ties. "No winners emerge from a trade war or from decoupling and ‘breaking chains," it added.4
- Yellen, however, said Washington's economic decisions toward China take into consideration national security concerns and that it "seek[s] to diversify, not to decouple."4
Sources: 1Reuters, 2Colorado Springs Gazette, 3Associated Press, and 4The Straits Times.
Narratives
- Anti-China narrative, as provided by The New York Times. Not only has China imposed harsh economic sanctions on US businesses, but it has detained Chinese nationals working for US companies in Beijing. China's economic policies are also connected to its stringent new national security and counter espionage laws, actions that have led the US to warn Americans against traveling to the country. If China keeps this up, it will likely only lead to further severance of ties.
- Pro-China narrative, as provided by Global Times. If Washington wishes to improve its poor relations with Beijing, it should start by eliminating tariffs on more than $300B worth of Chinese goods, which are detrimental to China, the US, and the global economy. The US could also relax export restrictions on high-tech exports to China and ensure that Chinese companies operating in the US can operate without interference. China must be treated as an equal partner rather than an enemy.
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