DEEPER TIES
Apart from US-China relations, Yellen also made a case for deeper economic ties with the Asia-Pacific region, arguing that greater engagement boosts trade, jobs and security both at home and abroad.
“Our economic ties underpin our approach to the Indo-Pacific,” said Yellen.
Her speech takes place as US Secretary of State Antony Blinken is set to visit Japan, South Korea and India after his latest crisis trip to the Middle East – keeping a US focus on Asia.
The Biden administration is committed to boosting trade and investment with countries in the Asia-Pacific region, said Yellen, with almost a quarter of US global exports already headed to the area.
Making the case for trade expansion, she said this boosts production at home and allows US businesses to expand their operations and create more jobs.
Economic engagement is also key to bolstering US supply chain security, she said, citing the approach of “friendshoring”, or diversifying US supply chains across allies and partners.
“We’re starting to see the impacts in the data,” Yellen added.
“Across sectors from auto parts to electronics, the US is importing more from key partners like India and Vietnam, as well as from Mexico, and is less dependent on one single country, in this case, China,” she said.
Yellen stressed that the US is “pursuing economic integration while still protecting our national security interests through targeted actions where necessary”.
Source: CNA
