Space Industry and Business News
TRADE WARS
Yellen urges China to shift from unfair state-driven economic policy
Yellen urges China to shift from unfair state-driven economic policy
By Beiyi SEOW
Washington DC (AFP) Dec 15, 2023

US Treasury Secretary Janet Yellen called Thursday for China to shift from a state-driven approach in economic policy, saying the model can discourage investors.

"Too strong a role for state-owned enterprises can choke growth, and an excessive role for the security apparatus can dissuade investment," she added, speaking at the US-China Business Council's 50th anniversary dinner in Washington.

US companies have long complained about what they see as an unfair business environment in China, with limited protection for intellectual property and preferential treatment afforded to domestic competitors.

The fears were worsened this year by a crackdown on consulting firms operating in China, and changes to an anti-espionage law that gives Beijing more power than ever to punish what it deems threats to national security.

Citing a recent US-China Business Council member survey, Yellen noted that firms were reconsidering investment plans and said that should be concerning for Beijing.

A bigger proportion of companies signaled plans to move some operations out of China in the 2023 survey than any year since 2016.

The trends point to potential benefits in China "pursuing structural reforms," Yellen said.

"For too long, American workers and firms have not been able to compete on a level playing field with those in China," she added.

"The PRC deploys unfair economic practices, from non-market tools, to barriers to access for foreign firms, to coercive actions against American companies," Yellen said, referring to the People's Republic of China.

- Managing 'shocks' -

At Thursday's dinner, the two countries' ambassadors read letters from US President Biden and Chinese leader Xi Jinping -- with Xi laying out a competing view to Yellen's, saying there was "great potential" for "strengthening China-US trade cooperation."

He added that Beijing would "unswervingly promote high-level opening up to the outside world, and create a market-oriented, rule of law-based, internationalized business environment."

"Chinese modernization will bring more opportunities to global enterprises including American ones," the letter continued.

Yellen also laid out priorities for US-China economic ties next year, noting that relations between the world's two biggest economies would continue to face challenges.

"We seek not to resolve all our disagreements nor avoid all shocks. This is in no way realistic," she said.

But Yellen added that Washington aims to "make our communication resilient."

When both sides disagree and shocks occur, this will help "prevent misunderstanding from leading to escalation and causing harm," she said.

Officials have sought to put a floor under relations as tensions soared in recent years -- with both countries clashing on issues such as human rights and export controls.

The Biden administration has made some steps to take the heat off, with visits to China by Secretary of State Antony Blinken, Yellen and Commerce Secretary Gina Raimondo.

In November, Biden and Xi held an in-person summit, agreeing to restore military communications.

- Seeking clarity -

Yellen said that her next trip to China as Treasury chief will include discussing "difficult areas of concern."

She added that the United States will hold firm its commitment to clear communication on topics like outbound investment restrictions, and keep pushing China on national security issues.

Other priority areas include "pressing for clarity on China's economic policies and policymaking to better inform our own decision-making."

"Understanding China's plans, especially how China intends to respond to challenges with local government debt and the real estate market or how it might react if unexpected weaknesses in its economy should arise, is crucial," she added.

The United States will also seek more transparency on China's non-market practices, Yellen said, and boost exchanges between financial regulators and in climate cooperation.

Responding to Yellen's comments on Friday, Chinese Foreign Ministry spokeswoman Mao Ning said that Beijing hopes "the US side will be consistent with its words and actions".

"It should not reiterate its intention to cooperate with the Chinese side... while at the same time constantly wielding the stick of sanctions against Chinese enterprises," she said.

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
China slams US House committee that urged economic reset
Beijing (AFP) Dec 13, 2023
Beijing said on Wednesday a bipartisan US committee that recommended a more aggressive approach to handling competition with China was "full of prejudice and hostility", accusing it of smears and attacks. The House Select Committee on the Chinese Communist Party (CCP) on Tuesday called for a "reset" of Washington's economic ties with Beijing, including moving China from its current tariff classification to ensure the country abides by its trade commitments. While many recommendations might not i ... read more

TRADE WARS
UK criticises dependency on China for rare metals

NASA Laser Reflecting Instruments to Help Pinpoint Earth Measurements

Closing the design-to-manufacturing gap for optical devices

This adaptive roof tile can cut both heating and cooling costs

TRADE WARS
HawkEye 360's Pathfinder constellation complete five years of Advanced RF Detection

New antenna offers unprecedented flexibility for military applications

WVU Team Tackles Radio Interference in Astronomy with NSF Funding

Quantum Space launches Sentry to pioneer deep space communications network

TRADE WARS
TRADE WARS
Airbus presents first flight model structure for Galileo Second Generation

Galileo Gen2 satellite production commences at Airbus facility

Galileo Second Generation satellite aces first hardware tests

PASSport project testing

TRADE WARS
NASA Awards Turbofan Engine Core Technology Demonstration Contract

China shows off homegrown C919 jet in Hong Kong

U.S. pilot ejects as F-16 crashes off South Korean coast

Seventh Osprey crash victim's body found

TRADE WARS
Researchers safely integrate fragile 2D materials into devices

ASML, Samsung ink 700mn chip plant deal as S.Korea president visits

With eye on China, Dutch and Koreans vow stronger chip ties

World's first logical quantum processor

TRADE WARS
Spire Global secures major EUMETSAT contract for satellite weather data

Sidus Space enhances geospatial data processing with AI integration in LizzieSat

Satellite-based method measures carbon in peat bogs

Iota Technology Partners with AAC Clyde Space for Earth Magnetic Field Mission

TRADE WARS
Brazil caimans fight to survive in polluted Rio waters

UK watchdog probes Unilever on 'greenwashing'

UK anti-terror police probe London vehicle pollution camera 'bombing'

'Stay home': Pollution chokes Iran's capital

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.