SAN FRANCISCO — US Treasury Secretary Janet Yellen said on Friday (Nov 10) that she and Chinese Vice Premier He Lifeng agreed to "intensify communication" on economic issues but warned him to crack down on Chinese companies that supply material support to Russia for its war in Ukraine.
The two "had candid, direct, and productive discussions" on issues from US export controls to possible areas of co-operation, including climate change and debt relief for low-income countries, Yellen told a press conference after two days of meetings in San Francisco.
The two held talks before the Nov 15 to 17 Asia-Pacific Economic Cooperation (Apec) gathering of leaders in San Francisco, which will feature a planned meeting between US President Joe Biden and Chinese President Xi Jinping.
Yellen said she accepted an invitation from He, referred to by China's state media as the director of a powerful Communist Party economic body, to return to China next year to a "regular cadence of contact" between the economic leaders.
She emphasised that the US has no desire to decouple its economy from China, but wanted a level playing field for US companies and workers.
"During our discussions, we agreed that in-depth and frank discussions matter, particularly when we disagree," Yellen said. "And I emphasised that the current uncertain global landscape makes it particularly crucial that we maintain resilient lines of communication going forward."
Yellen said that the Treasury has seen evidence that Chinese companies and banks may be aiding in the flow of equipment for use in Russia's war in Ukraine despite Western sanctions, and warned He that these firms "will face significant consequences" if they do.
"We would like to see China crack down on this, especially when we're able to provide information," Yellen said. She gave no further details on the names of the companies involved or on He's reaction.
The officials also discussed the Israel-Hamas war, and Yellen spoke about the need "to prevent escalation and expansion of the conflict in the Middle East," the Treasury said in a statement.
Communications with China would "avoid misunderstandings and unintended escalation," between the two countries, helping them to make better policy decisions, Yellen said.
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