Yellen Calls Out China's 'Unfair' Treatment Of US Companies, Aims To Revive Economic Ties: Semiconductor Stocks Rise

During her inaugural diplomatic visit to China as U.S. Treasury Secretary, Janet Yellen took a historic step by expressing concerns over China’s policies affecting American businesses. This initiative is part of a broader push to revive international relations.

Yellen urged China’s second-in-command not to allow frustrations over U.S. limitations on access to processor chips and trade restrictions on crucial metals to hinder economic collaboration between the two nations.

Criticizing Chinese Policies

Yellen called out China for maintaining an “unfair” economic system that undermines the competitiveness of U.S. companies. She accused the world’s second-largest economy of employing an array of regulatory restrictions and financial requirements that create an unequal playing field.

"I am communicating the concerns that I've heard from the U.S. business community, including China's use of non-market tools like expanded subsidies for its state-owned enterprises and domestic firms, as well as barriers to market access for foreign firms," Yellen said at the American Chamber of Commerce.

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Her comments come as President Joe Biden’s administration seeks to resume dialogue with China, abandoned during former President Donald Trump‘s tenure, particularly concerning trade and economic issues.

Yellen has said she finds “particular trouble” with Beijing’s new punitive actions, which appear to be an effort to make it more difficult for foreign companies to get sensitive data on certain industries by targeting U.S. due diligence and consultancy firms.

Improving International Relations

Despite the criticisms, Yellen stressed that the goal of her visit was to rekindle economic and trade discussions and seek common ground for cooperation. She highlighted areas such as climate change and the global response to the COVID-19 pandemic as potential points of collaboration.

The Treasury Secretary also reiterated the U.S. commitment to engaging with China in a “frank and open” manner, acknowledging the Asian nation’s economic significance.

Market Reaction: Semicondutors Rebound

U.S. semiconductor stocks rose on Friday, with the VanEck Semiconductor ETF SMH up 0.9% for the session.

NVIDIA Corp. NVDA gained 1.7%, Marvell Technology, Inc. MRVL was rose by 1.5%, along with Taiwan Semicondutor Manufacturing Company TSM, up 1.5%.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: Shutterstock and International Monetary Fund via flickr