In a speech last week Treasury Secretary Janet Yellen made it clear the Biden administration is not expecting any end to disagreements in the U.S.-China relationship, despite the relative warmth of the Xi-Biden meeting. While the U.S. “does not seek to decouple” from China, “we know that this relationship will face continued challenges. There are many areas on which the U.S. and China strongly disagree. There is also always the risk of shocks that impact both of our countries,” Yellen said in a speech at the U.S.-China Business Council’s 50th anniversary dinner. “We seek not to resolve all our disagreements nor avoid all shocks. This is in no way realistic. But we aim to make our communication resilient so that when we disagree, when shocks occur, we prevent misunderstanding from leading to escalation and causing harm.” Yellen also took aim at the Trump administration and specifically its China policy in her remarks. The Trump administration “failed to make investments at home in critical areas like infrastructure and advanced technology, while also neglecting relationships with our partners and allies that had been forged and strengthened over decades.” Trump policies on China “left America more vulnerable and more isolated in a competitive global economy that demands that nations take exactly the opposite approach.” “It damaged our global standing and meant significant missed economic opportunities for American firms and workers,” Yellen said. For a link to Yellen's full speech and more analysis of the US-China relationship, check out the latest edition of "Trade War":
