Janet Yellen explains US trade policy for China under Joe Biden

Janet Yellen, the Treasury secretary candidate for the incoming Biden-Harris administration, said that the new government will be using all possible tools to counter “China’s abusive unfair and illegal practices” that impact the economy of US. 

Yellen, while answering a series of questions from the Senate Finance Committee, said that China is responsible for “undercutting American companies” with the dumping of products, introducing barriers of trade, illegal subsidies and theft of intellectual property. 

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The statements given by the Treasury secretary nominee were a follow-up to Donald Trump’s policies against China, including a trade war that resulted in billions in tariffs.  

However, Yellen emphasised the importance of working with the allies of the US while recognising China as an important strategic competitor, unlike Trump. 

Yellen also focused on and opposed China’s strategy of portraying its currency lower than its actual value to make its products cheaper and to gain a trade advantage. 

She reaffirmed that the value of the currency “should be determined by markets” and “if confirmed, I will work to implement the President-elect’s promise to oppose any and all attempts by foreign countries to artificially manipulate currency values to gain an unfair advantage in trade.”

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She also stated that it’s important for the US to collect taxes from companies who have moved their operations out of the country while collaborating with the Organisation for Economic Cooperation and Development for digital tax negotiations.

Yellen said, “It would enable us to collect a fair share from corporations while maintaining the competitiveness of our businesses and diminish the incentives that American companies now have to offshore activities.”