U.S. Treasury Secretary Janet Yellen has issued a warning to Chinese banks and companies, as well as Beijing’s leadership, stating that there will be sanctions imposed if they assist Russia’s armed forces with the invasion of Ukraine. Yellen made this statement in an interview with CNBC’s Sara Eisen in Beijing, emphasizing that any involvement in supporting Russia’s military actions against Ukraine will not be tolerated.
President Joe Biden signed an executive order in December granting the Treasury secretary the authority to impose sanctions on financial institutions that aid Russia’s military-industrial complex. While the Treasury Department has not yet utilized this tool, Yellen’s message to China is clear – any assistance to Moscow in the current conflict will face severe consequences.
Yellen, who has been in China for several days meeting with top officials, including Vice Premier He Lifeng, has been delivering a firm economic message during her visit. She highlighted U.S. concerns about Chinese overcapacity in the green energy industry, particularly in solar panels, electric vehicles, and lithium-ion batteries. Yellen expressed worries about Chinese government subsidies distorting global markets and potentially harming other international companies.
In response to these concerns, Yellen did not rule out the possibility of imposing higher tariffs on Chinese imports. The issue of overcapacity is just one of many trade tensions that have plagued the U.S.-China relationship in recent years. Former President Donald Trump’s tariffs in 2017 strained economic cooperation between the two countries, and Biden has kept many of those tariffs in place, with the threat of increasing them if necessary.
Despite these challenges, Biden met with Chinese President Xi Jinping in California last November in an attempt to thaw relations and reinstate high-level communications between the governments. Yellen expressed optimism about the current state of economic relations between the U.S. and China, stating that progress has been made in comparison to a year ago.
The United States is taking a strong stance against any support provided by Chinese entities to assist Russia in the conflict in Ukraine. The threat of sanctions on Chinese banks and companies sends a clear message that the U.S. will not tolerate actions that aid Moscow in its military endeavors. Yellen’s visit to China and her discussions on economic issues reflect the complex dynamics of the U.S.-China relationship and the ongoing efforts to address trade tensions and promote mutual cooperation.
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