BEIJING — US Secretary of the Treasury. janet yellen said on Friday that it is “concerned” by the export controls that China announced this week.
China’s Ministry of Commerce announced Monday that, starting August 1, Chinese companies wishing to export two metals used in semiconductor manufacturing need to apply for licenses.
“I am also concerned about China’s recently announced new export controls on two critical minerals used in technologies such as semiconductors,” Yellen said in remarks prepared for a meeting with US companies in Beijing.
“We are still evaluating the impact of these actions, but they remind us of the importance of building resilient and diversified supply chains.”
The Biden administration has announced measures aimed at bolstering US technological capabilities and limiting China’s access to advanced technology. Those include extensive export controls that went into effect in October and restrict the ability of American companies to sell certain advanced computer semiconductor or related manufacturing equipment to China.
Yellen said that in her meetings with the Chinese government, she “made it clear that the actions we take to protect our national security are designed to have specific goals.”
“They are based on direct national security considerations and are not done to gain economic advantage over China.”
Beijing has so far taken relatively little action. In May, China said US chipmaker Micron had failed a security review and barred operators of critical infrastructure from buying from the company.
And this week, China’s Ministry of Commerce announced its upcoming export ban on the metals. gallium and germanium. The ministry said Thursday that its new rules it did not target a specific country.
Meanwhile, China has stepped up its efforts to attract foreign investment and engage business. The Ministry of Commerce said on Wednesday that it had met with 12 foreign pharmaceutical companies to understand their business challenges.
Yellen said in her meeting with US companies on Friday that she is “particularly concerned about the punitive actions that have been taken against US companies in recent months.”
Her visit to China, Yellen’s first under the Biden administration, follows US Secretary of State Antony Blinken’s high-stakes trip to Beijing last month. Blinken also met with American companies in China during your trip.
Yellen, a former head of the US Federal Reserve, has generally emphasized the economic importance of the US-China relationship. Mainland China is the second largest holder of US Treasuries, behind Japan.
She said Friday that the United States “does not seek” to separate its economy from China’s, and that “healthy economic competition” benefits both parties, according to her prepared remarks for the companies.
“On the economic front, regular exchanges with our Chinese counterparts can help us monitor economic and financial risks, and can help create the conditions for a healthy economic relationship between our two countries,” he said.
