Treasury Secretary Janet Yellen stated in an interview with CNBC on Monday that” the great majority of” deal between the United States and China is “is uncontroversial” and that she is working to prevent an unexpected increase of hostilities, that we “know one another’s dark ranges, we avoid errors, and we preserve financial relationships that are beneficial to both sides.
If American companies get reducing their manufacturing exposure to China, according to CNBC sponsor Sara Eisen?
Yellen answered,” Look, I think trade and investment between China and the United States is important. Some British businesses have been operating in China for a long time. Similar to how Taiwanese businesses operate in the United States, which is advantageous and unambiguous in many ways. And I believe we should never attempt to restrict that trading and investment connection.
Yellen continued,” But in places where we have national security worries, as we have evidently demonstrated, we stand ready to act to safeguard our national security. That might mean export controls or other measures, and we aim to only targeted those measures to prevent them from having a broad-based effects on China’s market as a whole. And we firmly believe that we need a level playing field, just like the Chinese do. Then, when we interfere, when we have regulations that affect our trade and investment with China, if it’s regional stability or other reasons, we go through an open and transparent guideline- writing process. We put out proposed requirements, we accept remarks, the Chinese have the opportunity to reply, we take the type, and we write laws. It’s very clear what we’re doing. In China’s case, often, the support, we believe, there’s maybe often a lot of support in ways that are not transparent, and that really is a meaningful difference. However, in general, we do n’t want to stifle trade and investment. So, I would not want to advise American firms, do n’t do business in China”.
Eisen followed up,” But if I’m Tim Cook of Apple and looking at the geopolitical relationship and the national security concerns, ultimately, wo n’t that trump the economic relationship”?
Yellen responded,” Well, the purpose of the dialogue that I’ve been involved with now for well over a year with our Chinese counterparts is intended to make sure that that does not happen, that we do n’t have an unintended escalation of tensions, that we understand one another’s red lines, we avoid misunderstandings, and we preserve economic interactions that are beneficial to both sides. We manage our relationship. To ensure that both sides continue to gain, we must manage it responsibly.
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