Volkswacht Bodensee - US seeks collaboration with China with eye on national security: Yellen

Her remarks outlining Washington's approach to US-China ties come ahead of Asia-Pacific Economic Cooperation (APEC) meetings this month in San Francisco -- where US President Joe Biden is expected to meet Chinese leader Xi Jinping for the first time since they conferred in Bali last year.

"We know the US-China relationship is among the most consequential in the world," Yellen told an event in Washington. "We need to get it right."

Setting out America's economic approach to China, she said both sides are working to collaborate on international issues including climate change and debt distress in low-income countries.

But the United States will not compromise on protecting its national security interests and advancing human rights, Yellen added.

She stressed that US national security actions would be "narrowly targeted," citing recent outbound investment restrictions that Washington insisted were not aimed at curbing China's growth, but at preserving national interests.

Another key aspect to the US approach is maintaining mutually beneficial ties, Yellen said, adding that this means "responding appropriately to China's unfair economic practices."

- Deeper ties-

Apart from US-China relations, Yellen also made a case for deeper economic ties with the Asia-Pacific region, arguing that greater engagement boosts trade, jobs and security both at home and abroad.

"Our economic ties underpin our approach to the Indo-Pacific," said Yellen.

Her speech takes place as US Secretary of State Antony Blinken is set to visit Japan, South Korea and India after his latest crisis trip to the Middle East -- keeping a US focus on Asia.

The Biden administration is committed to boosting trade and investment with countries in the Asia-Pacific region, said Yellen, with almost a quarter of US global exports already headed to the area.

Making the case for trade expansion, she said this boosts production at home and allows US businesses to expand their operations and create more jobs.

Economic engagement is also key to bolstering US supply chain security, she said, citing the approach of "friendshoring," or diversifying US supply chains across allies and partners.

"We're starting to see the impacts in the data," Yellen added.

"Across sectors from auto parts to electronics, the US is importing more from key partners like India and Vietnam, as well as from Mexico, and is less dependent on one single country, in this case, China," she said.

Yellen stressed that the US is "pursuing economic integration while still protecting our national security interests through targeted actions where necessary."

T.Germann--VB