U.S. Treasury Secretary Criticizes Trump's China Policies

U.S. Treasury Secretary Janet Yellen has criticized former President Donald Trump's approach to China, stating that it left America "more vulnerable and more isolated" in the global economy. In prepared remarks delivered at a U.S.-China Business Council event, Yellen pointed out that the Trump administration failed to make necessary investments in infrastructure and advanced technology while neglecting relationships with key partners and allies.

The comments from Yellen come as the United States works to rebuild its relationship with China, with President Joe Biden recently meeting with Chinese President Xi Jinping. During their meeting, the two leaders agreed to address the production of illicit fentanyl and resume military communications.

Yellen, who rarely comments on previous administrations' trade policies, emphasized that Trump's approach to China had detrimental effects on America's global standing and resulted in missed economic opportunities for American businesses and workers.

In her speech, Yellen highlighted the Biden administration's strategy of strengthening relationships with like-minded nations, such as South Korea, Vietnam, Japan, India, and Indonesia, through a concept called "friend shoring." She went on to mention the administration's commitment to investing in America through various agendas, including infrastructure, climate change, and semiconductors.

Yellen's criticism sheds light on the contrasting approaches of the Trump and Biden administrations regarding China and underscores the current administration's efforts to rebuild and strengthen alliances while prioritizing domestic investments.

The Biden Administration's Approach to China

The Biden administration has chosen to maintain several key policies from the Trump era that impose sanctions on China, including tariffs on specific Chinese imports into the United States. Treasury Secretary Janet Yellen made it clear in an interview with The Wall Street Journal that these tariffs are unlikely to be lowered.

While some adjustments may be made to rationalize the tariff structure, the general sentiment within the administration is that reducing the tariffs is not appropriate. This stance aligns with the Biden administration's overall approach to China, which aims to maintain a tough but constructive stance. National security remains a priority, but the administration also seeks areas of cooperation and mutual benefit.

To further protect national security, President Biden signed an executive order in the summer that regulates and blocks high-tech investments from the US going towards China. Additionally, in 2022, the US implemented measures to block the export of advanced computer chips to China.

This approach marks a discernible departure from the Trump administration's more hostile and aggressive stance towards China. The Biden administration recognizes the importance of shared interests and seeks to foster cooperation while still upholding national security considerations.

Despite the ongoing tensions, trade relations between the two nations remain significant. In 2022, goods and services traded between the US and China amounted to a staggering $758.4 billion, according to the US Trade Representative.

However, Chinese investment in the US has experienced a decline, with figures dropping to $28.7 billion in 2022, reflecting a 7.2% decrease compared to the previous year.