Yellen Says The US Seeks Healthy Economic Competition With China

MNI London: Wires carrying comments from US Treasury Secretary Janet Yellen as she begins a visit to China designed to convince Beijing that a viable commercial relationship can be maintained despite turbulence in defence and national security.

• Yellen: "The trip is an opportunity to communicate and avoid misunderstandings."
• Yellen says that the US seeks "healthy economic competition," but "will take action to protect national security when required."
• US officials have managed expectations but Bloomberg notes that Yellen is on China’s list of senior US officials “relevant to Beijing’s efforts to jumpstart” its economy.
• Markets will be looking for signs that Yellen's trip can prevent the further degradation of relations as the two powers seek to establish a rule book for the pragmatic management of trade and business ties.
• This week's trip is complicated by the increased risk that China may seek to impose greater restrictions on the export of critical and strategic minerals in response to US-led measures on semiconductor and tech components.
• Former Chinese Vice-Minister of Commerce, Wei Jianguo, told China Daily yesterday that controls on gallium and germanium are, "just the beginning of China’s countermeasures,”