Yellen Speech On US-China Relationship Underway Shortly

Treasury Secretary Janet Yellen is shortly due to deliver remarks to preview Treasury’s priorities for the U.S-China economic relationship going into next year. LIVESTREAM

• According to prepared remarks, Yellen will say: “America’s fundamental economic strength means that we have nothing to fear from healthy economic competition, with China or any other country. Our strength positions us to seek new opportunities while navigating challenges. It’s within this context that we’ve shaped our economic approach to China.”
• “I and other U.S. officials have repeatedly stated that the United States does not seek to decouple from China. This would be damaging to both our economies and would have negative global repercussions... The United States will pursue a healthy economic relationship with China, one that benefits both sides. We will seek to cooperate with China on global challenges. And because our national security must remain our foremost priority, we will deploy our economic tools when needed to secure our country’s national security interests and protect human rights.”
• Yellen’s speech come after the House of Representatives Select Committee on China this week adopted a new report which includes, “nearly 150 policy recommendations" that "outlines a strategy to fundamentally reset the United States' economic and technological competition with the People's Republic of China.”
• Although most of the recommendations are unlikely to become law, the reports stakes out a hawkish position on China which will likely continue to steer Congress towards more restrictive policy on export controls, tariffs, and capital flows.