WASHINGTON: US Treasury Secretary Janet Yellen on Thursday said that the United States’s economic ties with China are closer now despite recent tariff hikes and ongoing trade tensions, with both sides cooperating in areas like financial stability.
In an interview with CNBC, Yellen said, “I do believe it’s gotten closer,” relationship between the world’s two biggest economies.
Yellen emphasized the importance of cooperation in areas such as financial stability, noting that both nations have found ways to engage constructively in discussions about their differences. “We have found ways to constructively discuss and address our differences,” Yellen stated.
This assessment comes in the context of President Joe Biden’s administration, which has continued to impose tariffs on Chinese imports originally enacted during Donald Trump’s presidency. Additionally, the Biden administration has moved to restrict Chinese companies’ access to advanced technology, particularly in military applications.
The current trade relationship has become a focal point as both Biden and his political opponent, Vice President Kamala Harris, take firm stances on China in the lead-up to the November election.
Despite the competitive landscape, Yellen highlighted specific areas of collaboration that are essential for global stability. “We’re cooperating in areas that the world needs us to work together,” she said.
On the domestic front, Yellen expressed optimism about the US economy, indicating that various indicators—including employment figures and growth rates—suggest the country is on a path toward a “soft landing,” despite potential risks ahead.
She acknowledged that addressing inflation remains a priority, particularly in housing costs, which she believes are likely to decline.
During her speech at the Federal Reserve Bank of New York, Yellen also called for enhanced regulations to bolster the resilience of the US financial system. “A resilient financial system is critical to a strong economy,” she stated.
