Janet Yellen: “US disengagement from China will be a worldwide catastrophe”

US Treasury Secretary Janet Yellen warned that any attempt to disengage from China would be “catastrophic” as the national security measures against Beijing are not intended to “suffocate” the Chinese economy, the Financial Times reported.

In her speech on Thursday, she called for “constructive and fair” economic relations between China and the US as Washington seeks to mend the bad relationship between the two economic superpowers.

catastrophic disengagement

Yellen said the US has taken targeted national security measures but is not trying to undermine China’s economic growth. “The United States will stand up for itself when our vital interests are at stake,” the US Treasury Secretary said, “but we are not seeking to ‘separate’ our economy from that of China. A complete decoupling of our economies would be detrimental to both countries.”

“This state of affairs would destabilize the rest of the world,” she added. However, while the treasury secretary called for “healthy economic relations” and stressed the need for cooperation on issues such as macroeconomics and climate change, her speech at Johns Hopkins also focused heavily on US concerns about China. The US will continue to work with allies to counter China’s “unfair” economic policies, she said.

Yellen said the US will continue to protect its national security interests and those of its allies and will fight back against the People’s Republic of China when necessary. “We will clearly convey our concerns to the PRC,” Ms Yellen said, before trying to reassure China that it is not trying to undermine the country. “While our targeted actions may have economic implications, they are motivated solely by our security and values ​​considerations. Our goal is not to use these tools to gain a competitive economic advantage,” she said.

Semiconductors

Referring to semiconductor-related export controls and other measures taken by the Biden administration, Yellen said that protecting certain technologies from the Chinese military is “a vital national interest.” But she noted that these efforts “are not aimed at hindering China’s economic and technological modernization.”

The Biden administration believed the two countries could “handle the responsibility of our economic relationship,” she added, “but whether they work together to drive global economic progress will depend on how both countries act in the coming years.”

Human rights
Yellen stressed that the US will not compromise on human rights issues. “With our eyes, the world has seen how the Chinese government is stepping up repression at home,” she said. She also expressed concern that China’s “uncompromising” relationship with Russia is a “worrying sign of the end of the war.” [в Украине]”.

At the same time, she urged China to work with Washington to help emerging markets and developing countries facing debt problems. “China’s involvement is essential for meaningful debt relief. But it has not taken comprehensive measures for too long,” the minister said.

Yellen criticized China’s attempts to use its economic power “to coerce vulnerable trading partners.” “The pretext for China’s actions is often commercial,” she said. “But its real purpose is to impose the consequences of choices it doesn’t like and force governments to capitulate to its political demands.” ).

Moreover, she argued that both countries “should be able to frankly discuss difficult issues.” When Joe Biden and Xi Jinping met at the G20 in November, they put a series of high-level visits on the table, starting with Secretary of State Anthony Blinken’s trip to Beijing in February. But that plan was thwarted when a spy balloon appeared over the US, and Blinken canceled the first visit to China by an American cabinet official in years. In a rare positive sign, however, senior Commerce Department officials, including Elizabeth Econom, visited Beijing this month to talk about a possible visit later this year by Gina Raimondo, the Commerce Minister.

The US Treasury Secretary, in her heartfelt speech, forgot to mention Taiwan, in connection with which relations between the countries have recently begun to deteriorate. First on the island happened visit of the Speaker of the House of Representatives USA Nancy Pelosi, then the United States supplied a large consignment of weapons to the island, and the other day about 100 US military arrived in the country. The latest provocation was visit of the President of Taiwan to the United Stateswhich infuriated the Chinese authorities.

China considers Taiwan its territory, as, indeed, most countries of the world, incl. and USA. But lately, the United States has been constantly showing that it does not take into account such a statement, pursuing an openly provocative policy towards China.

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