Treasury secretary says screening will be “highly targeted” after four-day visit to stabilise the turbulent relationship
US controls on investment into China would only target sensitive national security sectors, Janet Yellen has told her counterparts in Beijing during a four-day visit aimed at putting a “floor” under their turbulent relationship.Speaking at a news conference on the final day of her visit, which included meetings with Premier Li Qiang and her counterpart He Lifeng, the US Treasury secretary said she wanted to allay concerns about harm to China’s economy from the possible national security action.
Throughout her visit Yellen has talked up the potential for ongoing trade and economic co-operation between the US and China, highlighting Washington’s desire to stabilise the relationship, even as it makes it harder for China to obtain American technology.
The Biden administration is now considering a mechanism to reduce the risk of US investment helping China’s military. “I emphasised that [investment screening] would be highly targeted and clearly directed narrowly at a few sectors where we have specific national security concerns,” Yellen said.