China continues to use an extensive range of non-market policies and practices, including widespread government support, to gain market share at the expense of foreign competitors on a scope and scale different from other major economies. In Beijing, Secretary Yellen pressed her Chinese counterparts on unfair economic practices that undercut that goal. Healthy economic competition requires that American workers and businesses are able to operate on a level playing field. We seek a fair and healthy economic relationship that benefits both countries and supports American workers and businesses. To be clear: neither targeted national security actions nor attempts to build diversified supply chains represent decoupling. As Secretary Yellen has said publicly, we do not seek to decouple our economies that would be disastrous for both nations, and as a practical matter, nearly impossible to do. Second, we seek a healthy economic relationship with China that fosters growth and innovation in both countries. It is our core mission to protect the American people from national security risks while also clearly communicating our position and intent to China to reduce the risk of misunderstanding. When necessary, we will use a suite of tools to achieve our national security goals. Our Administration has clearly communicated our serious concerns to the PRC. Our Administration has three objectives in the U.S.-China economic relationship: protecting national security and human rights, pursuing healthy economic competition, and cooperating on areas of mutual concern.įirst, the United States will not hesitate to take targeted actions to secure our national security interests and those of our allies and partners, and we will protect human rights. Secretary Yellen frankly and directly conveyed our areas of disagreement, while also opening up further dialogue as part of an effort to responsibly manage this relationship. During meetings with our counterparts, we had direct, substantive, and productive discussions. Our bilateral relationship is among the most consequential in the world, and its trajectory will impact the lives and livelihoods of people in our countries and beyond. The United States and China together represent 40 percent of the global economy. national and foreign policy interests.Įarlier this month, I accompanied Secretary Yellen to China to build on President Biden’s directive to deepen communication between our two countries and stabilize the relationship. Because the Secretary and I just returned from a trip to China, I will focus my opening remarks on our engagement with China and how Treasury uses our economic tools to promote U.S. I want to share with you Treasury’s perspective on addressing economic coercion and increasing U.S.

Chairman Menendez, Ranking Member Risch, and Members of the Committee, thank you for the opportunity to testify before you today.

Congressional budget office medicare