US Treasury Secretary Janet Yellen arrived in Beijing on July 6, starting a four-day visit aimed at easing rising tensions between the world's two largest economies, especially over trade and the high-tech industry.
However, on July 7, Ms. Yellen criticized the Chinese government's treatment of companies with foreign ties, as well as its recently announced decision to impose export controls on some minerals important to chip production.
Ms. Yellen's strong statement came during a meeting with business leaders at an event organized by the American Chamber of Commerce in China.
“In meetings with my counterparts, I am conveying concerns I have heard from the US business community, including China’s use of non-market instruments such as expanding subsidies to state-owned and domestic enterprises, as well as market access barriers for foreign companies,” Ms. Yellen said.
“I am particularly concerned by the punitive actions that have been taken against American companies in recent months,” she added.
Ms Yellen's comments underscore the challenges facing the world's two largest economies as they seek to overcome deep differences.
US Treasury Secretary Janet Yellen meets with US business leaders in Beijing on July 7. Photo: NY Times
The Biden administration has announced measures to bolster U.S. technological capabilities and limit China's access to advanced technology, including sweeping export controls that take effect in October 2022 and limit the ability of U.S. companies to sell certain advanced computing semiconductors or related manufacturing equipment to China.
The US is also considering new restrictions on advanced chips and investment in the Asian country, and restricting Chinese companies' access to its cloud computing services.
These additional measures are said to be aimed at plugging loopholes in previous restrictions on China's access to advanced chips used for artificial intelligence.
Faced with these moves, China has begun to fight back. In May, Beijing said that US chipmaker Micron failed its security assessment, and banned critical infrastructure operators from buying the company’s products.
On July 3, China's Ministry of Commerce continued to retaliate with a second ban on the export of gallium and germanium, two metals needed to produce advanced chips, effective August 1. The ministry said its new rules were not targeted at a specific country.
Speaking in Beijing, Ms. Yellen said she was “concerned” about China's decision to impose export controls.
“We are still assessing the impact of these actions, but they remind us of the importance of building diverse and resilient supply chains,” Ms. Yellen said. According to Ms. Yellen, the US may take additional measures to ensure that American businesses and workers are treated fairly.
“I will always defend the interests of businesses and strive to ensure a level playing field. We will coordinate with our allies to deal with China's unfair economic practices,” Ms. Yellen pledged to businesses .
Nguyen Tuyet (According to New York Times, CNBC)
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