US Treasury Secretary Yellen Conciliatory China Tones: "The World Needs Cooperation of the Greatest Powers"

"The US does not want to slow down China's modernization, stressed the US Treasury Secretary. With one caveat.

In an attempt by the US administration to thaw out freezing relations with China, Treasury Secretary Janet Yellen stressed in a keynote address that the US seeks constructive and fair economic relations with the country. "We should work together, if possible, for the benefit of our countries and the world."

Yellen emphasized in the speech that the economic sanctions against China were solely for national security purposes and were not aimed at gaining a competitive advantage or slowing down China's modernization. 

However, when it comes to national security issues, America does not compromise, even if it means accepting economic costs, said Yellen at Johns Hopkins University, according to circulated speech excerpts.

In October 2022, the US issued sales restrictions with the stated aim of restricting China's acquisition of advanced computer chips, as well as the country's ability to develop supercomputers and produce advanced semiconductors. Under President Donald Trump, the American government launched a trade war with China in response to Beijing's business practices, which Washington has perceived for years as unfair and harmful to America's security interests.

According to calculations by the Peterson Institute think tank, the US imposes an average tariff of 19.3 percent on Chinese exports, six times more than before the trade war broke out, and two-thirds of Chinese exports are affected. China responded with tariffs averaging 21.1 percent on American exports to China, which, however, account for just under a quarter of Chinese exports to the United States. Despite the barriers, imports of goods and services from China hit record levels in 2022.

Relations cooled further in late January this year when a things that American security forces mistook as Chinese spy balloons flew over North America. Yellen and Secretary of State Anthony Blinken canceled planned trips to China because of the incident.

Conflict with China inevitable

Yellen's speech also aimed at the American audience and contradicted the thesis that a conflict between the two economic powerhouses was inevitable because the USA was in decline as an economic powerhouse and was being overtaken by China. Pronouncements of America's decline have been circulating for decades and have always been proven wrong, the minister said. Recent economic data underscored America's ability to adapt to new challenges. Since the end of the Cold War, hardly any industrialized country has grown faster than the USA, which has also recovered from the pandemic much faster than the most important developed countries.

The United States believes that healthy competition under fair rules can benefit both countries, Yellen said. Constant sustained competition for customers drives companies to produce better and cheaper goods. This promotes prosperity and innovation in both countries. However, the US would continue to respond to unfair business practices and support investments in critical technology areas in America.

According to Yellen, America seeks cooperation with China on major global challenges. It is important to make progress on these issues regardless of any disagreements. The world needs the cooperation of the two largest economic powers.”

We are not interested in all your talk. We are only interested in one thing: Are you going to give the kindergarten teacher's husband, Gabrielius Landsbergis, some kind of big pension for making tiny Lithuania the only one to declare a hybrid war on huge China, or not? Will he be rich as result of the fact that we are suffering from the highest inflation in the European Union? Otherwise, we Lithuanians should be recognized as the biggest idiots in the world.