Yellen Speaks on US Efforts to Counter China’s Predatory Financing Tactics
Members sought answers from Treasury Secretary regarding the restructuring of Chinese-owned debt and preventing China from dominating critical industries.
On July 9, Treasury Secretary Janet Yellen appeared before Congress to discuss the “State of the International Financial System.”
Congressional focus was primarily on China, acknowledging it as a significant threat, with House Speaker highlighting the Chinese Communist Party (CCP) as the top security concern for the U.S.
During the hearing, lawmakers questioned Ms. Yellen on combating CCP’s aggressive financial practices globally, controlling China’s dominance in technology production, and supporting Taiwan amidst CCP aggression.
“We are diligently working to assist low-income countries in debt restructuring within an IMF program,” Ms. Yellen informed the committee, noting China’s reluctance in these efforts.
Taiwan’s security and IMF membership were additional concerns for members. Ms. Yellen indicated support for increased engagement between the IMF and Taiwan but refrained from endorsing its membership.
There were concerns about giving away leverage on sanctions and trusting CCP’s promises, as voiced by members during the hearing.
The Chinese Mission to the U.S. did not provide an immediate response to these concerns.
