2023-06-14 03:13:07
WASHINGTON (AFP) – U.S. Treasury Secretary Yellen said today that international financial institutions such as the International Monetary Fund (IMF) and the World Bank (World Bank) “reflect American values” in “unsustainable lending from countries such as China”. play a key balancing role.
Agence France-Presse reported that Janet Yellen (Janet Yellen) expressed the view to the House Financial Services Committee (House Financial Services Committee), seeking congressional support for the United States to increase lending to these organizations to help developing countries.
“Our leadership at these institutions is one of the core ways we engage with emerging markets and developing countries,” Yellen told lawmakers.
Aid from international financial institutions “comes with strong demands for governance, accountability and debt sustainability,” she said.
“This becomes an important counterweight to opaque, unsustainable lending by countries like China,” Yellen said.
Tensions between the world’s two largest economies are growing, as the United States and China vie for influence in developing countries.
For now, Yellen said U.S. authorities are seeking permission to continue participating in the International Monetary Fund’s New Arrangements to Borrow and seek to lend up to $21 billion to the IMF’s two funds.
Yellen also said that she does not think China is eligible for the World Bank loan, and Washington will not vote to support the World Bank loan to China.
US authorities have been trying to persuade other countries to stop such borrowing.
In response to Yellen’s question regarding international financial institutions reflecting U.S. values, a spokesman for China’s foreign ministry said: “The IMF is not the U.S. IMF, and neither is the World Bank.”
On security issues, Yellen said: “We are looking at potential restrictions on outbound investment, which might involve private equity firms, that is, private equity firms that invest in Chinese companies with ties to the Chinese military.”
But she emphasized that it is not in the interests of the United States to hinder the economic progress of the Chinese people.
Yellen said: “I think it would be good for us to benefit from being as open as possible to trade and investment; trying to decouple from China would be a disaster for us. Reduce risk? Yes. Decoupling? Not at all .” (Translator: Xu Ruicheng / Verified manuscript: Cai Jiamin)
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