Yellen: Trump China policies left America ‘more vulnerable’
WASHINGTON — Treasury Secretary Janet Yellen says former President Donald Trump’s policies toward China left America “more vulnerable and more isolated” in the global economy, a rare jab by her at the front-runner for the Republican presidential nomination.
Yellen, in prepared remarks that were to be delivered Thursday night at a U.S.-China Business Council event, says 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.”
Her comments come as the U.S. rebuilds its relationship with the Asian superpower, including a November meeting between President Joe Biden and Chinese President Xi Jinping in San Francisco. The two nations agreed to curb the production of illicit fentanyl, a deadly component of drugs sold in the United States, and agreed to resume military-to-military communications.
Yellen, who rarely comments on the previous administration’s approach on trade, says Trump-era policies on China “left America more vulnerable and more isolated in a competitive global economy that demands that nations take exactly the opposite approach.”
In her speech, previewed for the news media ahead of the event, Yellen highlights the Biden administration’s strategy of strengthening relationships with likeminded nations through “friend shoring” with such nations as South Korea, Vietnam, Japan, India and Indonesia.
“Over the past three years, the Biden administration has course-corrected,” she says. “We’re investing at home through President Biden’s Investing in America agenda,” citing new laws on infrastructure, climate and semiconductors, among others.
The Biden administration has, however, kept in place some major Trumpera
policies that are punishing to China, including tariffs on select Chinese goods imported into the United States.
Yellen, in an interview with The Wall Street Journal in May, said the U.S. wouldn’t likely lower the tariffs.
“I can imagine some adjustments taking place to rationalize the tariff structure, but my sense is, the general feeling in the administration is that it’s not appropriate to lower the tariffs,” she said.
In addition, Biden signed an executive order over the summer designed to regulate and block high-tech U.S.-based investments going toward China, a move his Democratic administration said is based on protecting national security. And in 2022, the U.S. moved to block exports of advanced computer chips to China.
Goods and services traded between the two nations totaled $758.4 billion in 2022, according to the U.S. trade representative. However, Chinese investment in the U.S. is decreasing, to $28.7 billion in 2022, down 7.2% from the previous year.