Yellen urges US and European allies to tackle China together

Janet Yellen, U.S. Treasury Secretary

By David Lauder

WASHINGTON (Reuters) – US Treasury Secretary Janet Yellen on Tuesday stepped up her criticism of China’s economic and trade practices, urging the United States and its European allies to unite to challenge Beijing’s and diversify supply chains.

“We have a common interest in encouraging China to avoid adverse economic practices,” Yellen said in a speech at the Brussels Economic Forum.

He notes that Chinese trade and investment practices, development and climate policies and financing practices have left some countries with unsustainable debt burdens.

“We all want to encourage China to abandon its condemned practices,” Yellen said. “If we can do that, we will compete on an equal footing with China, which will benefit our businesses and consumers.”

Yellen warned that Western countries were dependent on China for rare earth metals, and that Beijing was currently seeking to dominate semiconductor production by creating strong market share in some technology products.

These developments could further undermine Beijing’s geopolitical influence on democratic market economies, but could also reduce those risks through “friend-showering” – important products that seek to work with allies and allies to increase productivity and then expand trade with each other.