11:24 AM – Friday, July 7, 2023
Treasury Secretary Janet Yellen is sticking up for American businesses battling China’s punitive actions against them.
During her visit with American business leaders in Beijing on Friday, Yellen criticized some of China’s economic practices like subsidies for state-owned companies that create an unfair playing field.
She also raised concerns that Beijing is tightening its chokehold grip on rare-earth metals used to make microchips, electric cars and military gear. Semiconductor manufacturers have tried to sweep China’s newly imposed measures but Yellen has said ‘Not so fast.’
“I’ve been particularly troubled by punitive actions that have been taken against U.S. firms in recent months,” Yellen stated. “I’m also concerned about new export controls recently announced by China on two critical minerals used in technologies like semiconductors.”
China is the world’s largest producer over these two minerals which allows the country to have a major sway over supplies. Yellen acknowledged that this points to the importance for the U.S. to build a diversified supply chain.