US Treasury Chief warns companies about geopolitical risks with China
2022.11.30 12:51
US Treasury Chief warns companies about geopolitical risks with China
Budrigannews.com – Businesses reviewing their supply chains should be aware of the geopolitical risks associated with China’s threats to Taiwan and other Chinese practices that have raised concerns about U.S. national security, according to U.S. Treasury Secretary Janet Yellen on Wednesday.
Yellen stated at the New York Times Dealbook Summit that the Biden administration has made it clear that it respects Beijing’s “one China” policy, but that it was “extremely important” to keep the peace in the Taiwan Strait and the relationship between China and Taiwan.
Yellen responded, “If China made good on its long-standing threats to seize control of Taiwan by force, what would happen to American businesses?”So this is something that surely we would have zero desire to witness. However, it is appropriate for American businesses to consider the geopolitical risks that are becoming increasingly prominent.
According to Yellen, businesses in the United States are beginning to take supply chain risks like those from Taiwan and China, which have raised concerns about national security, more seriously.
She has coined the term “friend-shoring” to describe her recent push for supply chain diversification away from China and toward market-oriented democracies like India.
However, she stated that the global economy depended on the United States and China maintaining strong business ties. During her first in-person meeting with a high-ranking Chinese economic official two weeks ago at the G20 summit in Indonesia, Yellen expressed her hope for more frequent interactions between the world’s two largest economies.
According to Yellen’s remarks at the DealBook summit, “I expect, certainly hope and expect that there will continue to be very strong ties between China and the United States when it comes to mutually beneficial trade and investment.””Either to United States, China, or to the global economy to see that erode” would be detrimental.
