2023-12-15 03:05:00
United States Treasury Secretary Janet Yellen (REUTERS/Carlos Barria)
The Secretary of the Treasury of the United States, Janet Yellen, urged China this Thursday to abandon its “unfair statist economic policy” that, in her opinion, discourages investors.
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“Too important a role for state-owned enterprises can stifle growth, and too much of a security apparatus can deter investment,” he added, at the 50th anniversary dinner of the US-China Business Council, held in Washington.
American companies have long complained about what they see as an unfair business environment in China, with limited intellectual property protection and preferential treatment to domestic competitors.
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These fears were compounded this year by a crackdown on American consulting firms operating in the country, and Washington has been pushing for a more predictable business environment and a level playing field.
Citing a recent survey among members of the US-China Business Council, Yellen noted that companies are reconsidering their investment plans, which should worry Beijing.
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In the 2023 survey, a larger share of companies reported plans to move some operations out of China than in any year since 2016.
Chinese President Xi Jinping (EFE/FILE)
Trends point to potential benefits in China “pursuing structural reforms,” Yellen said.
“For too long, American workers and businesses have not been able to compete on a level playing field with those in China,” he added.
“The People’s Republic of China deploys unfair economic practices, from non-market tools, to barriers to entry for foreign companies, to coercive actions against American companies,” Yellen said, referring to the People’s Republic of China.
Yellen also laid out priorities for economic ties between the US and China next year, noting that relations between the world’s two largest economies will continue to face challenges.
“We do not intend to resolve all our disagreements or avoid all clashes. This is not at all realistic,” he stated.
But Yellen added that Washington intends “for our communication to be resilient.”
When both sides disagree and clashes occur, this would help “prevent misunderstandings from leading to escalation and causing damage,” he said.
In recent years, tensions have soared and both countries have clashed over issues such as human rights and export controls.
President Joe Biden’s administration has taken some steps to de-escalate tensions, with visits to China by Secretary of State Antony Blinken, Yellen and Commerce Secretary Gina Raimondo.
In November, Biden and Chinese President Xi Jinping held an in-person summit, where they agreed to restore military communications.
At dinner on Thursday, ambassadors from both countries read letters from Biden and Xi. Biden noted that the global community looks forward to cooperation between the United States and China on issues such as climate change, while Xi pointed to a “promising future” for greater economic cooperation.
Yellen said her next trip to China as Treasury chief will include discussing “difficult areas of concern.”
In November, Biden and Chinese President Xi Jinping held an in-person summit, in which they agreed to restore military communications (REUTERS/FILE)
He added that the United States will remain steadfast in its commitment to clear communication on issues such as restrictions on foreign investment, and will continue to pressure China on national security issues.
Other priority areas include “pressing for clarity on China’s economic policies and policymaking to better inform our own decision-making.”
“Understanding China’s plans, especially how it plans to respond to challenges with local government debt and the real estate market or how it might react if unexpected weaknesses arise in its economy, is crucial,” he added.
The United States will also seek more transparency about China’s non-trade practices, Yellen said, and boost exchanges between financial regulators and on climate cooperation.
(AFP)
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