WASHINGTON, April 13 – China should help end Russia’s “heinous war” in Ukraine or face a loss of its standing in the world, US Treasury Secretary Janet Yellen said on Wednesday, warning that those who seek to undermine western sanctions face economic consequences.
Yellen said in a landmark speech that she “fervently” hopes that China will use its “special relationship” with Russia to persuade Moscow to end the conflict, and that countries “on the fence” about the war are “on the fence.” ‘, being short-sighted.
“The world’s attitude towards China and its willingness to embrace further economic integration may well be influenced by China’s response to our call for decisive action on Russia,” Yellen said at the Atlantic Council think-tank in Washington.
The comments echo the Biden administration’s calls for China to condemn the invasion of Russia and side with Western democracies with which Beijing has lucrative economic ties.
US President Joe Biden also told Indian Prime Minister Narendra Modi on Monday that buying more Russian oil was not in India’s interests. Continue reading
China “strongly refuses” to link China-Russia relations to the Ukraine crisis, said Liu Pengyu, a spokesman for the Chinese embassy in Washington, adding that Beijing is “committed to promoting peace talks.”
“China opposes all forms of unilateral sanctions and lengthy US jurisdiction and will resolutely defend the legitimate rights and interests of Chinese companies and individuals,” he said in an emailed statement.
Looking ahead, Yellen said it is becoming increasingly difficult for China and the West to separate economic issues from broader national security concerns.
“Whatever China’s geopolitical goals and strategies, we see no benevolent interpretation of the Russian invasion or its implications for the international order,” Yellen said.
China cannot expect the world to respect Beijing’s future appeals for sovereignty and territorial integrity if it fails to respect those principles in Ukraine “now, when it matters most,” she added.
US Treasury Secretary Janet Yellen testifies before a House Financial Services Committee hearing on the state of the international financial system on Capitol Hill in Washington, United States, April 6, 2022. REUTERS/Tom Brenner
But Yellen said in a question-and-answer session that the United States must work hard with China to avoid a bipolar global financial system that pits market-driven democracies against autocratic, state-driven economies.
China’s reliance on state-owned companies and other practices has damaged US national security interests, she said, adding that maintaining current ties requires changes and Beijing’s cooperation.
“I’d like to see us retain the benefits of deep economic integration with China — and not move into a bipolar world — but I think that’s a threat we need to address,” Yellen said.
Yellen also expressed concern that China’s new strict COVID-19 pandemic lockdowns would cause a fresh wave of supply chain disruptions that could hurt the global economic recovery.
Yellen also called for more “friendshoring,” meaning the shifting of supply chains to more trusted partner countries that are free from geopolitical conflict.
The US Treasury chief also said global economic growth is being hurt by the Russia-Ukraine war and that the Biden administration is determined to hold Russia accountable for its “horrific conduct” and violations of international law.
MODERNIZATION OF INSTITUTIONS
Yellen’s comments come just days before the International Monetary Fund and World Bank member countries convene their spring meetings in Washington next week, and she said the war in Ukraine “will be on everyone’s lips, though.”
She called for these institutions, created at the end of World War II, to be “modernized” to meet the challenges of the 21st and support low-income countries. Last week, Yellen said Russia should be excluded from the group of 20 major economies whose finance chiefs are due to meet in Washington next week.
Yellen also said she plans to convene other leaders during IMF and World Bank meetings to discuss possible solutions to food price spikes that are hurting the world’s poorest. Continue reading
“Some might say now is not the time to think big,” she said, citing the war and the ongoing pandemic. “Nevertheless, I see this as the right time to work to close the gaps in our international financial system that we are monitoring in real time.”
Reporting by Andrea Shalal and David Lawder; Edited by Andrea Ricci and Alistair Bell