US Treasury Secretary Janet Yellen on Thursday expressed her desire for a “constructive and equitable” economic relationship with China, though without compromising national security issues. Yellen said the US seeks a healthy economic relationship with China that is conducive to growth and innovation in both countries. However, she emphasized that the US will not compromise national security interests, even when they require compromises with the country’s economic interests.
Washington has increased sanctions against Chinese chipmakers in recent months in the name of national security. Yellen stated that these national security policies are not intended to allow the United States to gain a competitive economic advantage or to stifle China’s economic and technological modernization. She also mentioned that they will continue to partner with their allies to respond to China’s unfair economic practices.
In the past month, Beijing has accused Washington of stoking tensions between the two powers and warned of the risk of “conflict.” China and the United States are in a fierce battle over the manufacture of semiconductors, the essential electronic components for smartphones, connected vehicles, and military equipment. In addition, a landmark $300 million fine was imposed on Wednesday on a supplier of Chinese giant Huawei, in Washington’s crosshairs over cybersecurity and suspicions of espionage.
Recently, French President Emmanuel Macron has made statements that have raised doubts among Paris allies, including the United States. On his return from China, he called on Europeans not to be “followers” of Beijing or Washington on Taiwan and to “rely less on the Americans” on defense. He also advocated greater economic autonomy for Europe. Trump, the former US president who launched the trade war against China in 2019, commented that Macron was in China kissing Chinese leader Xi Jinping’s ass.