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Janet Yellen Defends US Actions to Protect National Security in Meeting with Chinese Premier
US Treasury Secretary Janet Yellen arrived in Beijing on July 6, 2023, for her first visit under the Biden administration.
During a meeting with Chinese Premier Li Qiang, Yellen defended American actions taken to protect its national security. She emphasized that in certain circumstances, the United States will need to pursue targeted actions to safeguard its interests. Although there may be disagreements between the two countries over these actions, Yellen highlighted the importance of avoiding misunderstandings that could harm the bilateral economic and financial relationship.
Export Controls and Chip Manufacturing
Last October, the US announced sweeping export controls to restrict Chinese businesses' ability to develop advanced semiconductors. In response, China's Ministry of Commerce recently revealed that starting from August 1, businesses in China wanting to export metals used in chip manufacturing will need to apply for licenses. The measures were stated to be not targeted at any specific country, and China claims to have notified both the US and Europe ahead of the public announcement.
Cooperation and Global Leadership
Yellen stressed the importance of cooperation and global leadership in addressing important global challenges. She believes that the US and China have significant roles to play in these areas. Yellen's visit to China comes after US Secretary of State Antony Blinken's visit to Beijing last month and amidst China's slowed economic growth.
Meetings with Chinese Officials
Prior to her meeting with Premier Li Qiang, Yellen held discussions with former Vice Premier Liu He and former People's Bank of China Governor Yi Gang. The meeting, which lasted longer than scheduled, involved conversations regarding the global economic outlook and the respective economic outlooks for both the United States and China. During her four-day trip, Yellen aims to find common ground and build a better understanding between the two nations.
According to state media, Premier Li Qiang also held discussions with economic experts to analyze growth trends and gather suggestions for economic work. Li acknowledged the significant impact of the complex global political and economic situation on China's development.
The defense of US actions to protect national security by Janet Yellen in her meeting with the Chinese Premier highlights the ongoing tensions between the two nations and the potential impact on businesses, particularly those operating in the tech industry.
The export controls imposed by the US on Chinese businesses involved in advanced semiconductor development indicate the growing efforts to safeguard sensitive technologies. In response, China has implemented stricter licensing requirements for the export of metals used in chip manufacturing. These measures may lead to disruptions in global supply chains and affect businesses reliant on these materials.
The emphasis on cooperation and global leadership by Yellen recognizes the importance of finding common ground between the US and China. For new businesses, this underlines the need to navigate the complexities of the US-China relationship and adapt their strategies accordingly.
Meetings with Chinese officials, including discussions on economic outlooks, highlight the significance of economic considerations in the ongoing bilateral relationship. As tensions persist, businesses need to monitor developments closely, as they may face additional regulatory hurdles or changes in market dynamics.
Overall, the US-China dynamics discussed in Yellen's visit have implications for new businesses operating in the global landscape. To succeed, businesses must carefully assess geopolitical risks, remain informed about evolving regulations, and consider diversifying their supply chains and market presence to mitigate potential disruptions. The ability to adapt to changing circumstances will be crucial in navigating the challenges and opportunities presented by the US-China relationship.Article First Published at: https://www.cnbc.com/2023/07/07/us-treasury-secretary-janet-yellen-meets-chinese-premier-li-qiang.html