Tuesday, January 19, 2021
“Unfair and Illegal Practices”
Yellen announces tough China course
According to future Treasury Secretary Janet Yellen, the new US administration will use all means at its disposal to counter “China’s unfair and illegal practices”. In her hearing before the Senate Finance Committee, the former Federal Reserve chief said China is harming US businesses with a range of measures, including illegal subsidies, dumping, intellectual property theft and trade barriers on US goods.
The ir criticisms were the same as with the administration of the outgoing President Donald Trump, whose measures against China include an expensive trade war with punitive tariffs in the billions. “China is clearly our main strategic competitor,” said Yellen. Unlike Trump, however, she stressed the importance of “working with our allies” on this challenge.
Yellen also reiterated the US’s commitment to market-driven exchange rates and made it clear that the country was not seeking a weaker dollar as a competitive advantage. Efforts by foreign countries to artificially manipulate their currencies are “unacceptable”. She also stated that the possibility of issuing 50-year government bonds should be examined.
Yellen announces a new aid package
But she wants to focus on the needs of America’s workers. If her calling is confirmed, she will ensure the US has a competitive economy that offers good jobs and wages in cities and rural areas, Yellen said.
“From day one, I will focus on helping America’s workers and small businesses get the relief in the recently passed bill into effect as quickly and efficiently as possible, and then work on a second package over time, from I think we need it to get through these dark times before the vaccination program allows us to return to life as we knew it, “said the 74-year-old.
Additional expenses to help families and businesses in difficulty, including extended unemployment benefits and food aid, could therefore be of greatest benefit relative to the cost to the economy as a whole.