The US urged the Chinese regime to abandon its “unfair economic policy” against North American companies

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In a recent address at the 50th anniversary dinner of the US-China Business Council, United States Treasury Secretary Janet Yellen called on China to abandon its “unfair statist economic policy” which she believes is deterring investors. Yellen expressed concerns about the role of state-owned enterprises and security apparatus in China, and the negative impact these could have on economic growth and investment.

Yellen pointed out that American companies have long complained about the unfair business environment in China, citing limited intellectual property protection and preferential treatment for domestic competitors. These concerns have been further heightened by a crackdown on American consulting firms in the country, prompting Washington to push for a more predictable business environment and a level playing field.

A recent survey among members of the US-China Business Council revealed that companies are reconsidering their investment plans in China. According to the survey, a larger share of companies reported plans to move some operations out of China than in any year since 2016, indicating growing concerns about the business environment in the country.

Yellen emphasized that potential benefits in China lie in pursuing structural reforms, and urged the country to engage in more transparent economic policies. While acknowledging that disagreements and clashes will continue to exist between the two countries, Yellen stressed the importance of maintaining resilient communication to prevent misunderstandings from escalating and causing further damage.

The US Treasury Secretary also outlined priorities for economic ties between the US and China, including pressing for clarity on China’s economic policies, seeking transparency about non-trade practices, and boosting exchanges between financial regulators and on climate cooperation.

Yellen’s remarks come at a time of heightened tensions between the US and China, with clashes over issues such as human rights and export controls. President Joe Biden’s administration has taken steps to de-escalate tensions, including visits to China by top officials and an in-person summit between Biden and Chinese President Xi Jinping in November. The two leaders agreed to restore military communications and expressed optimism for cooperation on issues such as climate change.

Yellen stated that her next trip to China as Treasury chief will include discussions on “difficult areas of concern,” indicating that US efforts to address economic and security issues with China will continue in the coming months.