Janet Yellen Warns about the Consequences of Decoupling From China.
Lately, the mainstream media and politicians from both sides of the aisle are at full volume advocating punishing China economically and restricting American companies investing and doing business in China. Many are even prepared to go to war over the Taiwan issue.
Meanwhile, French President Emmanuel Macron and President of the European Commission Ursula von der Leyen, recently visited China to seek alternative solutions. After his trip, Macron even advocated that Europe reduces its dependency on the United States and avoids getting dragged into a confrontation between the U.S. and China.
In a major speech yesterday, as reported by the Financial Times and other news media, Janet Yellen warns that US decoupling from China would be ‘disastrous’. She said that national security measures targeted at Beijing were not designed to “stifle” the Chinese economy. “The US will assert ourselves when our vital interests are at stake….But we do not seek to ‘decouple’ our economy from China’s.”
Janet Yellen said that the world’s two largest economies “can and need to find a way to live together”. According to CNN Business, Yellen outlined three objectives of the US relationship with China: prioritizing national security and defending human rights, promoting a healthy and fair economic relationship with China, and cooperating with China to address global issues.
Many others, notably Jeffrey Sachs, John Mearsheimer and Kishore Mahbubani have also warned that: A full separation of our economies would be disastrous for both countries. It would also be destabilizing for the rest of the world!
