Yellen warns against ‘geopolitical coercion’ from Russia and China

WASHINGTON, Oct 12 (Reuters) – U.S. Treasury Secretary Janet Yellen said on Wednesday that the global economy faces “significant headwinds” and that the United States is working to strengthen its supply chains and protect itself from “geopolitical coercion” from Russia, China and others. .

Yellen told an event organized by the Bretton Woods Committee, a booster group, that Washington was working to deepen integration with the European Union and Indo-Pacific countries, including many emerging markets and developing countries, while building more redundancies into its supply chains .

“We know the cost of Russia’s weaponization of trade as a tool of geopolitical coercion, and we need to mitigate similar vulnerabilities to countries like China,” Yellen said, underscoring Washington’s determination to hold Russia accountable for its invasion of Ukraine and its initial food blockade . and energy shipments from the country.

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Yellen and other Biden administration officials have also been outspoken about the need to reduce reliance on Chinese supply chains and counter what they see as Beijing’s misbehavior in the global economy.

She said Washington is working to reduce US companies’ “extreme dependence” on semiconductors from Taiwan and other technologies, including solar panels or critical components for electric vehicle batteries made in China and a few other countries.

“Friend-shoring is not meant to be a small handful of countries. It’s not meant to be protectionism. It’s something meant to (gain) diversity … but still get the benefits of trade,” Yellen said.

Last month, US Trade Representative Katherine Tai also raised concerns about China’s “non-market economic policies and practices and economic coercion” during a meeting with Britain’s new Secretary of State for International Trade, Kemi Badenoch.

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Reporting by Andrea Shalal and Dan Burns; Editing by Mark Porter and Sam Holmes

Our standards: Thomson Reuters Trust Principles.

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