US Treasury Secretary Janet Yellen speaks during a gathering with Chinese Premier Li Qiang (not shown) on the Great Hall of the People in Beijing, July 7, 2023. (Photo by Mark Schiefelbein/POOL/AFP) (Photo by MARK SCHIEFELBEIN/POOL/AFP via Getty images)
Mark Schiefelbein | afp | Getty’s paintings
BEIJING — US Treasury Secretary Janet Yellen said on Friday she was “concerned” about the export controls China announced this week.
China’s Ministry of Commerce announced Monday that corporations in China that wish to export two metals used in semiconductor production can have to use for licenses starting August 1.
“I’m also concerned about China’s recently announced new export controls on two key minerals used in technologies equivalent to semiconductors,” Yellen said in remarks prepared for a gathering with US corporations in Beijing.
“We’re still assessing the impact of those actions, but they remind us of the importance of constructing resilient and diverse supply chains.”
The Biden administration has announced measures to bolster U.S. technology capabilities and limit China’s access to advanced technology. These include sweeping export controls that went into effect in October and limit the flexibility of U.S. corporations to sell certain advanced computer semiconductors or related manufacturing equipment to China.
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Yellen said that in her meetings with the Chinese government, she “made it clear that the actions we take to guard our national security are supposed to be narrowly targeted.”
“These are based on easy national security considerations and aren’t undertaken to achieve economic advantage over China.”
Thus far, Beijing has taken relatively little motion. In May, China reported that US chip maker Micron has not passed the protection review and banned critical infrastructure operators from buying from the corporate.
This week, China’s Ministry of Commerce announced an impending export ban on gallium and germanium metals. The ministry said on Thursday that the new rules didn’t apply to a particular country.
Meanwhile, China redoubled its efforts to draw foreign investment and business involvement. The Ministry of Commerce said on Wednesday it had met with 12 foreign pharmaceutical corporations to know their business challenges.
Yellen said Friday at a gathering with U.S. corporations that she “was particularly concerned about the punitive actions which have been taken against U.S. corporations in recent months.”
Her visit to China, the first Yellen under Biden, follows US Secretary of State Antony Blinken’s all-important trip to Beijing last month. During his trip, Blinken also met with American corporations in China.
Yellen, the previous head of the US Federal Reserve, generally emphasized the economic importance of the US-China relationship. Mainland China is the second largest holder of U.S. Treasury bonds, after Japan.
She said Friday that the US “doesn’t seek” to decouple its economy from China’s and that “healthy economic competition” advantages either side, in line with her prepared notes to businesses.
“Within the economic sphere, regular information exchange with our Chinese counterparts will help us monitor economic and financial risks, and will help create the conditions for healthy economic relations between our two countries,” she said.