US Treasury Secretary Janet Yellen has warned that companies, including those in China, that provide material support for Russia’s war against Ukraine will face significant consequences.
She also reinforced that the U.S. Government will impose sanctions on banks that facilitate significant transactions that channel military or dual-use goods to Russia’s defense industrial base.
Yellen made these warnings at a news conference concluding her visit to China.
Yellen said that during her week-long tour of China, she had “productive, direct, and extensive meetings” in Guangzhou and Beijing with China’s economic leadership, including Premier Li Qiang, Vice Premier He Lifeng, Governor of the People’s Bank of China Gongsheng, and Finance Minister Lan Foan. She also met with American and other foreign businesses, Chinese academics and students, and local government leaders.
Vice Premier He and Yellen agreed to launch intensive exchanges on balanced growth in the domestic and global economies.
The U.S. Treasury chief told reporters that during conversations in China, she underscored that the United States does not seek to decouple from China. “Our two economies are deeply integrated, and a wholesale separation would be disastrous for both of our economies. Even as we take actions to diversify our supply chains, we seek to preserve the broader trade and investment relationship that can benefit American workers and firms. China is a key market for American products and services. And competition between our firms can spur greater dynamism and innovation in American industries. The American businesses that I spoke to in Guangzhou underscored the significant benefits of a healthy economic relationship.”
Yellen said she raised the U.S. concerns about China’s trade imbalances and overcapacity.
Yellen said she expressed concern to senior Chinese officials that there are features of the Chinese economy that have growing negative spillovers on the U.S. and the globe. “I am particularly worried about how China’s enduring macroeconomic imbalances — namely its weak household consumption and business overinvestment, aggravated by large-scale government support in specific industrial sectors — will lead to significant risk to workers and businesses in the United States and the rest of the world”.
She said when the global market is flooded by artificially cheap Chinese products, the viability of American and other foreign firms is put into question.
A new Joint Treasury- People’s Bank of China Cooperation and Exchange on Anti-Money Laundering was established during the Treasury Secretary’s china trip.
At the news conference, the two sides announced that they will continue a series of financial technical exchanges.
The United States will be hosting its Chinese counterparts next week for the fourth meetings of the Economic and Financial Working Group.
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