Yellen says US and China need 'healthy economic relationship’ | Business and Economics

US Treasury Secretary Janet Yellen has accused Chinese companies of supplying Russia with war equipment in Ukraine.

US Treasury Secretary Janet Yellen has stressed the need for „healthy economic relations” between China and the US, while pressing Beijing to crack down on Chinese companies aiding Russia’s war in Ukraine.

Washington is not seeking to decouple the US and Chinese economies, but Yellen said President Joe Biden’s administration would not shy away from unilateral action against Chinese companies that supply Moscow with defense equipment.

„We are not seeking to separate our economy from China,” Yellen told reporters after a two-day meeting with Chinese Vice Premier He Lifeng in San Francisco.

„It will harm the US and China and destabilize the world.”

Yellen said the Treasury had seen evidence that Chinese companies and banks had „facilitated” the flow of equipment to Moscow and would face „significant consequences”.

„Despite the sanctions we have implemented, we are concerned that equipment critical to Russia’s military effort is being supplied to Russia in defiance of sanctions,” he said, adding that he did not blame the Chinese. Complicit government.

Yellen added that she had accepted an invitation to return to China next year as part of „routine engagement” between economic leaders.

The meeting comes ahead of sit-down talks between Biden and Chinese Premier Xi Jinping, who will travel to San Francisco next week for the Asia-Pacific Economic Cooperation summit of leaders from across the Pacific.

US-China relations have nosedived under former US President Donald Trump, who has imposed tariffs and sanctions against Chinese companies to boost domestic production and punish Beijing for rights abuses.

Relations have been strained under Biden, who has continued his pioneering efforts to revive American manufacturing and fend off Chinese tech companies.

Biden has been making moves to begin an upheaval in recent months with a flurry of visits and diplomacy by senior officials.

In January, Yellen had her first face-to-face meeting with former Vice Premier Liu He, and in July she Visited China to discuss economic policies and cooperation on climate change and other global challenges.

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