Ahead of Summit, Yellen Says "US Does Not Seek Decoupling from China"

Amid efforts to arrange a face-to-face summit between U.S. President Joe Biden and Chinese President Xi Jinping this month, U.S. Treasury Secretary Janet Yellen reiterated on the 2nd (local time) that the United States is not seeking to decouple from China. Regarding the bilateral relationship, she also described it as "the most consequential in the world."

[Image source=AFP Yonhap News]

On the same day, Secretary Yellen delivered a speech on the Indo-Pacific strategy at an event hosted by the Asia Society Policy Institute in Washington, D.C., stating, "We are not interested in a divided world and the devastating consequences that come with it." She emphasized that the U.S. is not pursuing decoupling from China, expressing concern that "an approach involving a complete separation of our economies or forcing Indo-Pacific countries to choose sides (either the U.S. or China) would have negative global repercussions."

As the U.S.-China hegemonic competition has become more overt, concerns have arisen that countries in strategically important regions such as the Indo-Pacific may be pressured to choose between "the U.S. or China." In response, Secretary Yellen reaffirmed the so-called "de-risking" approach?reducing risks from China through increased domestic investment and strengthened cooperation with allies, rather than decoupling. She also stressed the global impact and significance of U.S.-China relations, stating that "it must be set right."

This statement came as President Biden is pushing for a face-to-face meeting with President Xi during the Asia-Pacific Economic Cooperation (APEC) summit scheduled to be held in San Francisco from the 11th to the 17th of this month. Earlier, the White House announced that a principled agreement had been reached to hold a U.S.-China summit in November.

Secretary Yellen also reiterated the strategic importance of the Indo-Pacific region on the same day. She said, "The claim that the U.S. is neglecting the Indo-Pacific is completely unfounded," adding, "The Biden administration is committed to expanding trade and investment with Indo-Pacific countries." She further noted, "As economic ties deepen, they bring potential benefits to both the U.S. economy and the Indo-Pacific region."

According to the Treasury Department, trade volume between the U.S. and the Indo-Pacific region has steadily increased over the past decade, reaching $2.28 trillion last year. This represents an increase of more than 25% compared to 2019, before the pandemic. When combining goods and services, U.S. exports amount to $770 billion, accounting for about one-quarter of the total.

Secretary Yellen evaluated that "deeper economic ties with Indo-Pacific countries will enhance the resilience of U.S. supply chains," adding that "this provides safety for consumers and helps ensure that economic security is not overly dependent on any single country."

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