U.S. Treasury Secretary, Janet Yellen, expressed apprehension over China’s recent “punitive actions” against American businesses during her visit to Beijing. Yellen emphasized that she would directly convey the concerns of the U.S. business community to her Chinese counterparts in an effort to foster better communication between the two countries.
Addressing a roundtable discussion with American business leaders operating in China, Yellen voiced her disquiet about the punitive measures taken against U.S. firms in recent months. Her visit comes amidst an escalating tit-for-tat dispute between the two largest economies globally. On Monday, China announced new export controls on metals, specifically gallium and germanium – crucial minerals for semiconductor production.
Yellen expressed her concern regarding these metal export controls, acknowledging that the impact is still being evaluated. She emphasized the significance of establishing resilient and diversified supply chains amidst such actions.
Earlier this week, President Xi Jinping urged countries to refrain from decoupling and shutting down supply chains, shortly after China’s export controls were announced.
Yellen faces a challenging task of striking a balance between advocating for U.S. business interests and improving relations with China, rather than exacerbating tensions. While both sides claim to have positive intentions, their actions seem to further intensify the ongoing tech Cold War.