Treasury Secretary Yellen Rejects Decoupling from China, Calls It a Costly Mistake
U.S. Treasury Secretary Janet Yellen emphasized the importance of preserving ties with China.
While acknowledging the need to address human rights concerns, Yellen warned against decoupling from China, stating it would be a “big mistake” for the United States. She highlighted the mutual benefits of trade between the two countries, with Americans enjoying affordable goods and China benefiting from U.S. exports.
Although some lawmakers advocated for decoupling due to alleged human rights abuses, Yellen clarified that existing sanctions already restrict business engagement with entities involved in such violations. She reiterated that decoupling from China would have a “disastrous” outcome for the U.S., urging a focus on de-risking instead.
Yellen also urged lawmakers to increase lending to developing countries as a countermeasure to China’s growing influence. The Biden Administration aims to enhance participation in programs offered by organizations like the IMF, IDB, and ADF, which can serve as a transparent alternative to unsustainable lending practices. These investments are seen as crucial in maintaining geopolitical balance and countering China’s approach to lending.
Clever Robot News Desk 16th June 2023