Usa, Yellen: we will respond to unfair economic practices by China

USA recession at the door but no unemployment

(Finance) – The US Treasury Secretary, Janet Yellenhe said the United States and its allies would respond to what he called the “unfair economic practices” from the China. In a speech in Beijing at a meeting with US companies, Yellen said she “believes it is in the best interests of both countries to ensure that they have direct and clear lines of communication at a high level”. Regular trading could help monitor economic and financial risks as the global economy is weighed down by “headwinds such as the illegal war of Russia against theUkraine and the lingering effects of the pandemic”.

Yellen said she was “concerned” by China’s decision to start export controls on rare metals (gallium and germanium), essential for the production hi-tech. “We are still evaluating the impact of these actions, but they remind us of the importance of building resilient and diversified supply chains,” she stressed.

However, Yellen added that decoupling the economies of the US and China is “virtually impossible”, adding that it is in the interests of Beijing “open its economy towards a market model”. “During this trip, I am discussing our respective economic prospects with Chinese officials – he continued -. As I said in my speech in April, the United States seeks healthy economic competition with China. But healthy competition economicwhich both sides benefit from, is sustainable only if so competition he is loyal”.

“During meetings with my counterparts, I communicate them concerns which I have heard from community entrepreneurial of the States United, including China’s use of non-market tools such as extended subsidies for its state-owned enterprises and domestic enterprises, as well as market access barriers for foreign firms, Yellen said. I have been particularly disturbed by the punitive actions that have been taken against US companies in recent months.”

“I also think that a shift towards market reforms it would be in China’s interest – he added -. A market-based approach has helped spur rapid growth in China and helped drive China’s exit poverty hundreds of millions of people. This is a remarkable economic success story.”

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