Yellen Says US May Take Action Against China’s 'Economic Coercion’

Federal Reserve Chair Janet Yellen holds a news conference following the second day of the Federal Open Market Committee (FOMC) meeting on December 14, 2016 in Washington.
REUTERS/Gary Cameron

  • Treasury Secretary Janet Yellen said the US may take action against China’s „economic coercion”.
  • These measures include extending limits on investment in China.
  • Yellen’s comments come amid growing tensions between the two superpowers.

According to Treasury Secretary Janet Yellen, the United States and other countries in the Group of Seven may take steps to counter China’s „economic coercion.”

In a press conference at the G7 meeting of finance ministers and central bank governors on Thursday, Yellen said the United States has been taking countermeasures against China’s persuasive economic policies for some time, possibly with the concerted assistance of other countries.

Such measures include extending existing restrictions on investments in China along with other G7 countries, but no official action has yet been decided, he said.

„We are engaged in discussions with our G7 counterparts, and I expect these meetings to continue, at least in some informal way,” Yellen said. Reuters’ report.” My own view is that it should be focused on national security. It should not be focused on undermining China’s economic competitiveness or ability to advance economically.”

He specifically pointed to China’s sanctions against Australia and Lithuania, which he described as an act of clear coercion, Reuters reported.

His comments come amid growing tensions between the United States and China, with Chinese officials expressing anger last year at American politicians signaling their support for Taiwan. TikTok CEO Sho Chew At a March congressional hearing. Lawmakers have proposed a ban or forced sale of TikTok in the United States to address security concerns.

The U.S. has not sought it, despite what Treasury officials have said Separate economically From China, Chinese officials have suggested possible retaliation if its companies continue to face harsh treatment in the United States. Recently, the nation has begun revamping its anti-espionage laws Strict action against foreign companies Works in China to prevent spying.

This has led some experts to warn of a growing rift between the two countries. Tensions are now approaching a red line, a Yale economist said, and both forces may be viable Edge of WarBillionaire investor Ray Dalio warned.

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