The United States seeks “constructive and fair” economic ties with China. US Treasury Secretary Janet Yellen said in a speech on Thursday. In it, she explained the main goals of the Biden administration for the economic relationship between the world’s two largest economies.
While doing so, the US will protect its national security interests and continue to oppose China’s actions to dominate foreign countries, Yellen wrote in a statement released before her speech at Johns Hopkins University’s School of Advanced International Studies.
Yellen’s speech comes when tensions between the two superpowers have risen again. Washington and Beijing have clashed more than once over trade, human rights and other issues in recent years, and relations took a turn for the worse this year when the US shot down a Chinese balloon that Washington says was being used for espionage.
While both countries have agreed to improve communication on macroeconomic issues and to cooperate more on climate change and debt relief, Yellen said more needs to be done. “We call on China to honour its promise to work with us on these issues, not as a favour to us, but because of our shared obligation to the world.”
Yellen noted that China has expanded support for state-owned and domestic private companies to “dominate foreign competitors.” While some of the US’s national security actions against China may have economic ramifications, Yellen claimed the moves are “motivated solely by concerns about our security and values.”
Yellen thus opposed the idea that US national security actions aim to suppress China’s economic and technological modernization. “Our goal is not to use these measures to gain economic, competitive advantage.” Chinese President Xi Jinping previously criticized the US for leading an effort to contain and suppress China.
