In a speech delivered at a global economic forum, U.S. Treasury Secretary Janet Yellen described the current state of U.S.-China relations as being at a “tense moment” and emphasized the need for a productive approach towards bolstering economic ties with China.
Yellen acknowledged the ongoing tensions between the two economic giants but expressed optimism for a positive resolution.
Her speech, which comes amid heightened trade disputes and geopolitical tensions between the United States and China, underscored the importance of fostering better relations between the two nations.
She called for dialogue and cooperation to address the challenges and conflicts that have arisen in recent years, particularly in the economic sphere.
“Our relationship is clearly at a tense moment,” the secretary said. “My goal is to be clear and honest, to cut through the noise and speak to this essential relationship based on sober realities.”
Yellen emphasized the importance of addressing critical issues such as intellectual property protection, market access, and technology transfer, which have been points of contention in U.S.-China trade negotiations.
She noted that while progress has been made, there is still work to be done to ensure a mutually beneficial economic relationship that promotes global economic stability and prosperity.
“We must address the real and serious differences that exist,” Yellen said. “We are deeply integrated with one another. Overall trade between our countries reached over $700 billion in 2021.”
While nominal trade is robust between the two nations, the goods deficit is rather one-sided.
In 2022, the annual goods-trade deficit increased by 8 percent to $382.9 billion, the second largest on record. Many have pointed to the widening deficit as a point of vulnerability in the U.S. economy as the country becomes ever more reliant on foreign goods.
Human Rights Concerns
The secretary specifically called out human rights abuses against Muslims living in the Xinjiang region, where many have accused the Chinese regime of unlawfully detaining Uyghurs in forced labor camps.“The United States has really serious concerns about the PRC government’s abuses in Xinjiang,” she said. “We’ve imposed sanctions on the PRC, regional officials, and companies for a range of human rights abuses, from torture to arbitrary detentions.”
Her speech comes at a critical juncture in U.S.-China relations, with both countries navigating complex geopolitical and economic dynamics. While acknowledging the challenges, Yellen expressed optimism that a solution could be reached through dialogue and cooperation.
“We believe that by working together in a cooperative and constructive manner, we can find solutions to the challenges we face,” Yellen said. “We are committed to engaging with China in a manner that is fair, respectful, and beneficial to both countries and the global economy.”
