US Treasury Secretary criticizes China's measures against US firms

Beijing [China], July 8 : Amidst the ongoing tensions between the United States and China, American executives have expressed their frustration regarding the difficult and sometimes hostile business environment they encounter in China, The New York Times reported.

Treasury Secretary Janet L. Yellen echoed these concerns during her visit to Beijing, strongly objecting to the punitive measures imposed by the Chinese government on foreign firms, as tensions between the two nations continue to escalate.

Yellen criticized the Chinese government's harsh treatment of companies with international connections. She specifically highlighted the recent implementation of export controls on critical minerals. Yellen suggested that such actions validate the Biden administration's efforts to reduce reliance on China and promote domestic manufacturing.

Yellen communicated the concerns of the US business community, including China's use of non-market tools like expanded subsidies for its state-owned enterprises and domestic firms, as well as barriers to market access for foreign firms,The New York Times reported.

She criticized the Chinese government's harsh treatment of companies with foreign ties and its recent decision to impose export controls on certain critical minerals. She suggested that such actions justify the Biden administration's efforts to make U.S. manufacturers less reliant on China.

She said that the US does not seek a wholesale separation of our economies. We seek to diversify and not to decouple. A decoupling of the world's two largest economies would be destabilizing for the global economy, and it would be virtually impossible to undertake, according to The New York Times.

She conveyed her objections to China's top officials, including Premier Li Qiang, during the first visit to China by a Treasury secretary in four years, according to The New York Times.

Yellen discussed the bilateral economic relationship between the two countries.

"Today I met with U.S. businesses operating in China to discuss the bilateral economic relationship between our two countries. We seek a healthy economic competition that benefits American workers and firms," Yellen tweeted following her meeting with her counterparts.

She further slammed the Chinese government's harsh treatment of companies with foreign ties and its recent decision to impose export controls on certain critical minerals.

She stated that such actions justify Biden's administration's efforts to make US manufacturers less reliant on China.

Yellen during an event held by the American Chamber of Commerce in China, said, "During meetings with my counterparts, I am communicating the concerns that I've heard from the U.S. business community including China's use of nonmarket tools like expanded subsidies for its state-owned enterprises and domestic firms, as well as barriers to market access for foreign firms."

"I've been particularly troubled by punitive actions that have been taken against U.S. firms in recent months," she added.

However, she also said that the Biden administration is preparing additional restrictions on US technology trade with China, including potential limits on advanced chips and US investment in the country.

Moreover, it is also focusing to restrict Chinese companies' access to US cloud computing services to curtail China's use of advanced chips for artificial intelligence, reported The New York Times.