Yellen Criticizes China's Treatment of US Companies, Urges Beijing To Adopt Market Reforms

During her visit to Beijing on Friday, Treasury Secretary Janet Yellen voiced concerns over Chinese business practices, cautioning that the economic relationship between the US and China must benefit American workers and businesses, and stating that the US would respond to unfair economic practices.

In the midst of escalating tensions between the world's two largest economies, the secretary of the treasury will also confer with senior Chinese officials during her three-day visit.

Yellen: US Urges Healthy Competition With China

During the roundtable, Yellen also criticized new export controls announced by China on two essential minerals for semiconductor technologies, gallium, and germanium, as trade disputes between the two nations persist.

According to the Critical Raw Materials Alliance, gallium is utilized in electronics, including processors for mobile and satellite communications, LED displays, and sensors used in space and defense systems, among other applications. China contains eighty percent of the world's gallium, as per CBS News.

Germanium is utilized in fiber optics, infrared optics, electronics, and solar cells. China produces about sixty percent of the world's germanium. The US has taken steps to restrict Chinese access to certain technologies, and Yellen stated that the US is still assessing the impact of the export controls.

During a visit to Beijing aimed at mending strained relations, Treasury Secretary Janet Yellen informed Chinese Premier Li Qiang that the United States does not desire a "winner-take-all" competition.

The four-day mission is Yellen's first as US secretary of the treasury to China, with which the United States is at odds over trade restrictions, human rights, and numerous other issues.

However, Washington is attempting to reduce tensions, and on Friday, Yellen emphasized to Li that the United States does not desire an economic showdown.

She told Li at Beijing's Great Hall of the People, "We pursue healthy economic competition that is not winner-take-all, but that, with an equitable set of standards, can benefit both countries over time."

The United States has stated that it intends to "de-risk" China by restricting the world's second-largest economy's access to cutting-edge technologies deemed essential to Washington's national security.

Yellen emphasized to Li that, despite the fact that Washington "may in certain circumstances need to pursue targeted actions to defend its national security," this should not derail relations.

In her public remarks, Yellen made it clear that Washington and its Western allies will continue to respond to what she termed China's "unfair economic practices."

Just days before Yellen's visit, Beijing unveiled new export restrictions on metals essential to semiconductor manufacturing for national security reasons, highlighting the difficulties.

Experts Believe Yellen's Visit to China Helps Improve Ties

The secretary of the Treasury informed American entrepreneurs that Washington was "concerned" about the restrictions. During her visit, she emphasized that Washington was not pursuing a "complete separation of our economies."

Yellen also urged Beijing to return to the market-oriented policies that supported the city's swift development in the past. In defiance of tensions, Beijing has expressed optimism regarding the visit.

Li told Yellen on Friday that after a difficult period, China could see the relationship improving. According to analysts, Yellen's visit could facilitate a thawing of relations.

Chen Dingding, president of the Intellisia Institute in Guangzhou, said that the visit could have "positive implications" for US-China relations.

Expert on the subject at the Chinese Academy of Social Sciences Lyu Xiang stated that a modest step toward improved Sino-American relations would be a significant step for the world and the global economy.

A Treasury official said that on Saturday, Yellen will meet and dine with Chinese Vice Premier He Lifeng, a key official in charge of economic issues. In addition, she will speak on sustainable finance and with female economists, ABC News reported.