During her six-day journey through China, US Treasury Secretary Janet Yellen participated in an exclusive AmCham China Townhall in Guangzhou on April 5.
The event commenced with a luncheon attended by AmCham China leadership. Sean Stein, Chair of AmCham China, began by recognizing Janet Yellen’s significant role in enhancing bilateral communication between the US and China. He credited her, through her collaboration with Chinese Vice Premier He Lifeng, with effectively conveying US policy intentions and fostering better understanding between the two countries. Stein then introduced US Ambassador to China Nicholas Burns, who emphasized the historic nature of Secretary Yellen’s visit to Guangzhou and underscored her pivotal role in establishing vital communication channels between the two nations.
In her remarks, Secretary Yellen thanked the Chamber for hosting the event, underlining the significance of engaging with the American business community at the beginning of her visit. Recognizing Guangzhou’s historical importance in Chinese economic history and as the starting point of US-China trade in 1784, she emphasized the city’s relevance in representing the robust economic ties between the two nations. Yellen also shared her intentions to address concerns raised by the US business community in her discussions with her Chinese counterparts during her trip.
Secretary Yellen stressed the importance of the US-China economic relationship as one of the most crucial in the world, reiterating the three key objectives of the Biden Administration: maintaining a healthy economic relationship, cooperating on global challenges, and employing economic tools to protect national security and human rights when necessary. She underscored the Administration’s stance against complete economic decoupling, advocating instead for sustained investment in economic strength while addressing issues through targeted interventions.
The Secretary also reiterated that one of her ongoing key priorities has been establishing resilient communication channels between the US and China, highlighting the success of regular meetings of the Economic and Financial Working Groups. These meetings have facilitated discussions on key aspects of the relationship, potential areas of cooperation, and the prevention of misunderstandings and escalations in case of disagreements.
Recognizing the challenges faced by American enterprises operating in China, Secretary Yellen candidly acknowledged the business community’s concerns regarding unfair treatment. She cited the Chamber’s recent China Business Climate Survey (BCS) Report, revealing that one third of American firms in China report experiencing unfair treatment compared to local competitors. She emphasized the negative impact of such practices and expressed her intention to raise these issues in meetings during her trip.
Additionally, Secretary Yellen addressed other areas of concern for US businesses including China’s shift from a market approach and the prevalence of overcapacity – as also cited in the latest BCS survey. She noted that addressing these issues would benefit both American firms and China by improving the business climate.
The Secretary went on to call for market-based reforms in China, emphasizing the need to address overcapacity and pursue policies that generate both supply and demand. She highlighted the success of past market reforms in China in lifting millions out of poverty and stressed the potential for further gains.
Secretary Yellen concluded by reaffirming the administration’s commitment to dialogue and constructive exchanges with Chinese counterparts to stabilize the US-China economic relationship and realize greater benefits for both countries and the global economy.
After Secretary Yellen’s speech, AmCham China President Michael Hart joined her to moderate a media Q&A session. This was followed by another Q&A session specifically for the business representatives present at the event.
To see Secretary Yellen’s full remarks at the Townhall, please click here.