Yellen, in an interview with Bloomberg television in India, where she went to attend the G20 meetings, pointed out that China grew slower than expected after the reopening, and expressed that she trusts the strong Chinese growth to stimulate growth in the economies of many countries, especially in Asia.
Stating that the slow growth in China may have some negative effects for the US economy as well, Yellen said, “Growth has slowed down, but our labor market remains quite strong. I do not expect a recession. The latest inflation data are very encouraging that we are making progress in reducing inflation.” he said.
Yellen stated that it is normal for the growth to slow down in general after the rapid recovery, and that this also reduces the willingness of companies to hire.
“Export controls are for our national security”
Recalling that several years have passed with limited contact with Chinese senior officials, Yellen said, “Now we must make our relationship more stable, lay a foundation and try to promote better understanding between our countries.” used the phrase.
Yellen noted that during her recent visit to China, she met with a number of senior Chinese officials, including the country’s new economy team, and that they had candid discussions and expressed concerns on both sides.
Reminding that they agreed on a number of global challenges, especially debt and climate change, which affect the global economy and need to be worked together, Yellen said she hopes they can do this successfully in terms of tariffs.
Yellen pointed out the importance of export controls in ensuring the national security of the USA, drawing attention to the fact that the tariffs applied to China are not “for tit-for-tat”.
Explaining that they are looking carefully at the outgoing investment controls, Yellen stated that the USA can make new decisions regarding investments in China, including semiconductors, quantum and artificial intelligence.
Yellen said the reporting requirements would include bans in a narrow range of those industries, but not broad controls that would broadly affect US investment in China.
Yellen’s contacts will continue in Vietnam
Visiting Gandhinagar, India to attend the G20 Finance Ministers and Central Bank Governors meetings, US Treasury Secretary Yellen will go to Hanoi, Vietnam after completing her contacts there.
Yellen’s agenda, which will hold bilateral meetings in India and Vietnam, includes the deepening of the US’s economic relations with these countries, as well as the debt problems in emerging markets and developing countries, the development of multilateral development banks, support for Ukraine and the global tax agreement. there are topics.