American Executives Face Difficult Business Conditions in China, Says Treasury Secretary Yellen
Treasury Secretary Janet L. Yellen expressed concerns over the challenging and hostile conditions faced by American executives doing business in China. Speaking to a group of executives from American companies operating in China, Yellen criticized the Chinese government’s treatment of foreign firms and its recent imposition of export controls on critical minerals. Yellen suggested that these actions justify the Biden administration’s efforts to reduce reliance on China. Her comments underscore the challenges faced by the world’s two largest economies as they try to mend their differences.
Yellen’s forceful defense of American industry came on her first day of meetings in Beijing, where she aimed to ease tensions between the US and China. She voiced her objections to China’s top officials, including Premier Li Qiang, marking the first visit to China by a Treasury secretary in four years. Yellen conveyed concerns from the US business community, including China’s use of nonmarket tools such as expanded subsidies for state-owned enterprises and barriers to market access for foreign firms.
The concerns of American executives doing business in China have been exacerbated by recent actions taken against US firms. Chinese authorities detained employees of the Mintz Group, an American consulting company, and questioned employees of Bain & Company, a US management consulting firm. These actions were followed by restrictions imposed by the Biden administration on China’s access to critical semiconductor technology. In response, China has announced export controls on certain critical minerals used in chip production.
Chinese companies have also faced growing distrust in the US, particularly highlighted by congressional hearings on social media network TikTok’s ties to China. The Biden administration has urged TikTok’s Chinese owners, ByteDance, to sell the app or face a possible ban.
The meetings between Yellen and Chinese officials aimed to improve economic relations. A Chinese ministry of finance official expressed hope that both countries would take steps to enhance their relationship and warned against “decoupling” and disrupting supply chains. However, longtime observers remain skeptical about the chances of a swift breakthrough given the numerous and broad differences between the two countries.
US companies, alarmed by China’s tightening national security laws, have been advised by the State Department to reconsider traveling to China due to the possibility of wrongful detention. Despite political tensions, American companies in China have sought to play a constructive role in the economic relationship between the two countries.
Yellen’s meetings with top Chinese officials, including Premier Li, emphasized the importance of healthy competition and clarified that measures taken by the US for national security reasons should not be seen as attacks against China. Both sides expressed openness to closer communication and cooperation, raising hopes that the relationship between China and the US can be repaired.
In summary, American executives have expressed concerns about the difficult business conditions they face in China, and Treasury Secretary Yellen has raised these concerns during her meetings in Beijing. While tensions between the two nations remain high, there is hope for improved economic relations and closer cooperation in the future.