Yellen: We seek a constructive and fair economic relationship with China

US Treasury Secretary Janet Yellen said they seek a constructive and fair economic relationship with China, but will not hesitate to protect their national security interests.

The US Treasury Department shared the transcript of Yellen’s speech today at Johns Hopkins University on US-China economic relations.

Yellen affirmed that the United States remains committed to defending its national security, saying: “In this context, we seek a constructive and just economic relationship with China. Both countries must be able to discuss difficult issues honestly. And whenever possible, we must work together for the benefit of our countries and the world.”

Noting that the US economic approach towards China has three main goals, Yellen noted that the first of them is to ensure national security interests, the interests of allies and partners, and to protect human rights.

‘TO ANSWER CHINA…’

Stating that they will openly raise concerns about their behavior to China, Yellen said the United States will not hesitate to defend its vital interests, and while its targeted actions have economic effects, they are only driven by concerns about security and values. Yellen emphasized that his goal is not to use these tools for competitive economic advantage.

Noting that they are seeking a healthy economic relationship with China that fosters growth and innovation in both countries, Yellen said that a growing China that abides by international rules is good for the US and the world.

Yellen said: “Both countries can benefit from healthy competition in the economic field. But healthy economic competition, in which both parties benefit, can only be sustained when the competition is fair. “We will continue to partner with our allies to respond to China’s unfair economic practices.”

CALL ON CHINA TO FULFILL ITS PROMISE TO WORK WITH THE US

Noting that they are also seeking cooperation on today’s pressing global issues, Yellen said that since the meeting between US President Joe Biden and Chinese President Xi Jinping last year, both countries have been trying to increase their cooperation on issues such as macroeconomics, climate and debt problems. She stressed that she agreed, but that more needs to be done.

Yellen called on China to fulfill its promise to work with the United States on these issues, noting that this is their common duty and obligation to the world, and addressing these issues together will advance the national interests of both countries.

Stating that in recent years, many have seen the US-China conflict become increasingly inevitable, Yellen said this stems from fears shared by some Americans that the US is in decline.

Yellen said that while statements about the US crash have been circulating for years, they have always been proven wrong.

NATIONAL SECURITY EFFECT

Emphasizing that national security is very important in US relations with China as in all its foreign relations, Yellen recalled that they made it clear that protecting certain technologies of China’s military and security apparatus is of vital national interest.

Yellen asserted that these national security actions are not designed to gain competitive economic advantage or hinder China’s economic and technological modernization, and while these policies may have economic effects, they are directly driven by national security considerations. Yellen stressed that they will not engage with these concerns even if they are forced to sacrifice their economic interests.

Stating that the US is not looking for winner-take-all competition, Yellen noted that instead, they believe that healthy economic competition with fair rules can benefit both countries over time.

‘IT IS IMPORTANT THAT WE MOVE ON GLOBAL ISSUES’

Yellen stressed that healthy competition can only be sustained if it is fair to both parties, noting that China has long used government support to help its companies gain market share at the expense of foreign competitors.

Noting that China’s industrial policy has become more ambitious and complex in recent years, Yellen said the country has expanded its support for state-owned companies and domestic private companies to dominate foreign rivals, doing so in industrial sectors traditional and emerging illicit technologies and other methods, combined with aggressive efforts to acquire new technological know-how and intellectual property.

Yellen stated that the US will pursue the goal of cooperating on major global challenges while determining the terms of its economic engagement with China. “This is what the world needs from the two largest economies,” she said. (AA)