Treasury Secretary Janet Yellen is set to give a speech on Thursday to celebrate the 50th anniversary of the U.S.-China Business Council, emphasizing that the two countries should not economically “decouple,” according to Politico.
In the speech, Yellen will emphasize the U.S.’ commitment to continued communication in order to minimize misunderstandings and keep tensions to a minimum, expressing support to keep the U.S. and China’s economies from closing off from each other and decoupling, according to Politico. Yellen also announced that she will be visiting China in 2024, after previously visiting the country in July in an effort to ease heightened economic tensions related to the ongoing trade war involving the semiconductor industry.
“Continuing to stabilize our relationship to prevent escalation won’t make news,” Yellen will say in the speech, according to Politico. “But our economies, our people — and, again, also economies and people around the world — will be safer and more secure.”
The statements did not include mention of the Biden administration’s review of more than $300 billion worth of sanctions on Chinese goods that could be lifted after they were placed by former President Donald Trump, according to Politico.
Around $31 billion in foreign investment fled the Chinese market in 2023, and another $65 billion is set to be pulled out of the country in the next year as private investors increasingly judge China’s economy as a risky bet. China’s economy has failed to resume growth rates seen before the COVID-19 pandemic as key sectors like manufacturing and real estate struggle.
In September, the U.S. launched a pair of working groups with China to facilitate communication between the U.S. Treasury and China’s Ministry of Finance and the Bank of China. The point of the groups is to facilitate communication to ease tensions.
The Biden administration placed sanctions on the Chinese chip industry in October 2022, blacklisting a number of the country’s semiconductor companies from working with U.S. firms, increasing tensions in the ongoing trade war. In turn, China placed restrictions on the U.S. receiving the country’s rare earth metals, which are essential to chip production.
“We will continue to raise concerns on areas where the U.S. and China disagree, from the possible global spillovers of China’s industrial policies to actions China has taken that can disadvantage the private sector,” Yellen will say, according to Politico. “We will also ask for greater transparency on China’s non-market practices and foreign exchange practices.”
The Treasury did not immediately respond to a request to comment from the Daily Caller News Foundation.
Will Kessler on December 14, 2023
