US Yellen, Who Announced Investment Restrictions, Says National Security Is Most Important in China Relations

"National security is the most important factor in the relationship with China." On the 20th (local time), Janet Yellen, the U.S. Secretary of the Treasury, stated that national security is more important than economic growth in the U.S.-China relationship. This can be seen as a preannouncement of the Biden administration's upcoming regulations restricting investments in China, which are expected to be disclosed soon.

During a lecture at the Paul H. Nitze School of Advanced International Studies (SAIS) at Johns Hopkins University in Washington, D.C., Secretary Yellen said regarding measures to counter China, "There may be impacts on the (U.S.) economy, but these are pursued based on national security considerations," adding, "We will not compromise when there is a trade-off with economic benefits." This implies that national security is prioritized above all, even if it sometimes entails economic disadvantages.

[Image source=AP Yonhap News]

Secretary Yellen stated, "We have made it clear that protecting certain technologies from China's military and security apparatus is an important national interest," and added, "We have a broad range of tools to achieve this goal. We will take targeted measures if necessary." In particular, she confirmed, "We are carefully examining national security risks related to foreign investment in the U.S.," and "We are reviewing programs that restrict foreign investment in sensitive technologies in the U.S."

The Biden administration is expected to announce unprecedented regulations this month that will restrict U.S. companies' investments in China, focusing on advanced industries such as semiconductors. The day before, Politico reported that the forthcoming executive order would require U.S. companies investing in Chinese advanced technology firms to submit information reports and would impose a complete ban on investments in certain key sectors. Secretary Yellen's remarks reaffirm that the announcement of these regulations is imminent.

Secretary Yellen also repeatedly emphasized that these counter-China policies are from a national security perspective. She explained, "Concerns about national security and values," and that "this is not about gaining economic advantages or suppressing China's economic and technological modernization." She then outlined the basic principles for measures to protect national interests as ▲ clear goal setting ▲ ease of enforcement ▲ adaptability to changing circumstances ▲ cooperation with allied and partner countries in policy design and implementation.

Furthermore, "We seek a healthy economic relationship where both countries grow and innovate together," while asserting, "However, healthy economic competition can only be sustained when it is fair." Secretary Yellen criticized China for expanding support to state-owned enterprises and retaliating against trading partners, stating, "We will continue to cooperate with allies to respond to China's unfair economic practices." She also criticized China for being an obstacle to necessary measures on climate change and debt issues. Regarding her visit to China, she said, "I will go to China at an appropriate time," and expressed hope to "engage in important and substantive dialogue on economic issues."

This content was produced with the assistance of AI translation services.