In a recent address at the US-China Business Council’s 50th-anniversary dinner, Treasury Secretary Janet Yellen emphasized the need for China to transition from a state-driven economic policy to one that promotes healthy competition with the United States. Yellen criticized China’s use of unfair economic practices, such as non-market tools, barriers to foreign firms, and coercive actions against American companies, highlighting the negative impact these policies have on American workers and firms.
Yellen urged China to shift away from its current economic approach, saying it could discourage investors. She emphasized that reducing the role of state-owned enterprises and the security apparatus would benefit China’s growth and investment opportunities. Yellen referred to a recent survey by the US-China Business Council, which indicated that firms are reconsidering their investment plans, signaling a cause for concern for China.
Highlighting the potential benefits of structural reforms and fair treatment of foreign firms, Yellen emphasized that this approach would attract more foreign investment and address the inefficiencies and vulnerabilities resulting from China’s economic practices. She stressed the importance of pursuing these reforms at a critical economic trajectory.
Despite the tensions between the two countries, Yellen reiterated that the United States does not seek to decouple from China altogether. She emphasized the damaging consequences of complete separation on both economies and the negative global repercussions. Yellen’s remarks desire a balanced and cooperative economic relationship between the world’s two largest economies.
In conclusion, Treasury Secretary Janet Yellen’s address highlighted the need for China to transition from a state-driven economic policy to one that promotes healthy competition with the United States. She emphasized the negative impact of China’s unfair financial practices on American workers and firms. Yellen urged China to shift away from its current approach, highlighting the benefits of structural reforms and fair treatment of foreign firms. While acknowledging the tensions between the two countries, Yellen reiterated the importance of maintaining a cooperative economic relationship rather than seeking complete decoupling.