Decoupling would be disastrous for U.S., China: Janet Yellen

(ECNS) -- U.S. Treasury Secretary Janet L. Yellen on Sunday said her conversations with Chinese senior officials were “direct, substantive, and productive”, and she reaffirmed that the U.S. is not seeking to decouple from China, which “would be disastrous for both countries and destabilizing for the world,” at a press conference in Beijing.

As agreed between China and the U.S., Yellen has visited China from July 6 to 9. Her Beijing trip aimed to establish and deepen relationships with China’s new economic leadership team in place, she said. “Our discussions are part of a broader concerted effort to stabilize the relationship, reduce the risk of misunderstanding, and discuss areas of cooperation,” she added.

“We were able to learn more about each other’s economies and policy choices, which I believe is vital as the world’s two largest economies,” Yellen said.

Decoupling of the world’s two largest economies would be disastrous for both countries and destabilizing for the world, and it would be virtually impossible to undertake, she noted. “We want a dynamic and healthy global economy that is open, free, and fair - not one that is fragmented or forces countries to take sides,” she said.

The U.S. and China have significant disagreements, Yellen said, “But President Biden and I do not see the relationship between the U.S. and China through the frame of great power conflict.”

“We believe that the world is big enough for both of our countries to thrive. Both nations have an obligation to responsibly manage this relationship: to find a way to live together and share in global prosperity,” she added.

Yellen believes no one visit will solve those challenges overnight. She believes that the two countries must make the right choice for both peoples and the world as well, which advances shared interest for peace and prosperity.