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Janet Yellen
Secretary of Treasury
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Janet Louise Yellen is the U.S. Secretary of Treasury since January 26, 2021. An American economist, Yellen previously served as the 15th chair of the Federal Reserve from 2014 to 2018. She was vice-chair of the Federal Reserve from 2010 to 2014 and was President of the Federal Reserve Bank of San Francisco from 1997 to 1999. Yellen is also a professor emerita at Haas School of Business at the University of California, Berkeley and was formerly a distinguished fellow in residence at the Brookings Institution.
Views On China
At her Senate confirmation hearing, Yellen said she will “take on the challenge of China’ abusive, unfair and illegal practices” and referred to issues such as product dumping, illegal subsidies to corporations, intellectual property theft and forced technology transfer. This is consistent with her later interview with CNBC as well as her remarks during the Trump administration.
When asked about the Section 301 tariffs on China during the confirmation hearing, Yellen said that the Biden administration will “review the tariffs on China and consult with our allies and will not be making changes until we do both of these things.” In a later CNBC interview, Yellen said that tariffs on China have been kept in place “for the moment.” “Expect China to adhere to the commitments that were made and we’ll evaluate going forward what we think is appropriate.” In a February 2020 event, Yellen criticized the Trump administration’s focus on the trade deficit with China and appeared skeptical that the use of tariffs would help reduce trade deficits. Yellen noted during the confirmation hearing, however, that “the Biden Administration will make use of the full array of tools to counter China’s abusive economic practices and hold Beijing accountable.”
Yellen is seen as a moderate voice and a supporter of open trade and rules-based multilateralism. She stressed President Biden’s plan to “consult with allies to galvanize collective pressure on China” during the confirmation hearing. Yellen once warned about the risks of increased conflicts between the United States and China over emerging companies.
Most Recent Actions
- On December 16, the Department of Treasury identified eight Chinese technology firms as part of the “Chinese Military-Industrial Complex” for their alleged active support for “the biometric surveillance and tracking of ethnic and religious minorities in China.” Accordingly, U.S. persons are prohibited from purchasing or selling certain publicly traded securities connected with these entities.
- On December 10, the Department of Treasury imposed sanctions and investment restrictions on a number of Chinese individuals and entities for alleged human rights abuses, including through the “malign use” of “surveillance technology.”
- In her July 10 statement at the conclusion of the G20 Finance Ministers and Central Bank Governors Meetings, Secretary Yellen said 131 nations agreed to a global minimum tax of at least 15 percent and the G20 “made good progress” on climate change and helping lower-income nations to increase vaccine rollout. [Read more about the joint commitments at G20 Finance Ministers and Central Bank Governors Communiqué][July 1 Statement on the Agreement of 130 Countries to Support a Global Minimum Tax.]
- In April, 2021, the U.S. Department of Treasury released a report on the Made in America tax plan, which aims to eliminate incentives to offshore investment, reduce profit shifting, create a global agreement on minimum corporate tax and collect sufficient revenue to fund critical investment.
- On April 16, 2021, the U.S. Department of Treasury released the current report Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States that reiterates China’s active position as 1 of 11 countries in the Treasury’s Monitoring List and includes an economic analysis of China as the first of multiple Major Trading Partners. It also notes that “China has the largest trade surplus with the United States by far.”
- According to a December 2 report, Secretary Yellen said that lowering Trump-era tariffs on Chinese imports could ease some inflationary pressures, but that tariff exclusion is “not a game changer.”
- According to a November 14 report, Secretary Yellen said that the Biden administration is closely monitoring the situation concerning China’s Evergrande. She warned that slowdown in China’s economy can have “global consequences.”
- On October 26, Yellen held a virtual meeting with Chinese Vice Premier Liu He where they discussed macroeconomic and financial developments in the United States and China. Secretary Yellen noted that she looks forward to future discussions with Vice Premier Liu.
- On June 1, 2021, Secretary Yellen held what the Treasury termed “an introductory virtual meeting” with China’s Vice Premier Liu He, where Secretary Yellen discussed “the importance of cooperating on areas that are in U.S. interests, while at the same time frankly tackling issues of concern.” According to a Xinhua report, the two had a “candid” conversation.
Archive
In Her Words
- On December 16, the Department of Treasury identified eight Chinese technology firms as part of the “Chinese Military-Industrial Complex” for their alleged active support for “the biometric surveillance and tracking of ethnic and religious minorities in China.” Accordingly, U.S. persons are prohibited from purchasing or selling certain publicly traded securities connected with these entities.
- On December 10, the Department of Treasury imposed sanctions and investment restrictions on a number of Chinese individuals and entities for alleged human rights abuses, including through the “malign use” of “surveillance technology.”
- According to a December 2 report, Secretary Yellen said that lowering Trump-era tariffs on Chinese imports could ease some inflationary pressures, but that tariff exclusion is “not a game changer.”
- According to a November 14 report, Secretary Yellen said that the Biden administration is closely monitoring the situation concerning China’s Evergrande. She warned that slowdown in China’s economy can have “global consequences.”
- On October 26, Yellen held a virtual meeting with Chinese Vice Premier Liu He where they discussed macroeconomic and financial developments in the United States and China. Secretary Yellen noted that she looks forward to future discussions with Vice Premier Liu.
In Her Own Words
- On July 22, Secretary Yellen met with the heads and private-sector leads of several multilateral development banks to discuss ways to finance actions against climate change.
- Secretary Yellen and State Bank of Vietnam (SBV) Governor Nguyen Thi Hong met virtually on July 19 to discuss concerns for Vietnam’s currency practice.
- On July 19, 2021, Secretary Yellen and State Bank of Vietnam (SBV) Governor Nguyen Thi Hong said that the two agencies reached an agreement to address Treasury’s concerns about Vietnam’s currency practices. The SBV pledges to refrain from any competitive devaluation of the Vietnamese dong.
- On July 16, the U.S. Department of Treasury released Treasury International Capital (TIC) data for May 2021, reporting on foreign holdings of U.S. securities. [Comprehensive Data]
- In an interview with The New York Times in mid-July, Secretary Yellen said that the China Trade Deal made by the Trump administration failed to address the fundamental problems between the U.S. and China and “hurt American consumers.”
- In a July 12 remark to the Eurogroup, Secretary Yellen reiterated the United States’ commitment to building a stronger transatlantic economic relationship and expressed support for the Next Generation EU program.
- In her July 10 statement at the conclusion of the G20 Finance Ministers and Central Bank Governors Meetings, Secretary Yellen said 131 nations agreed to a global minimum tax of at least 15 percent and the G20 “made good progress” on climate change and helping lower-income nations to increase vaccine rollout. [Read more about the joint commitments at G20 Finance Ministers and Central Bank Governors Communiqué][July 1 Statement on the Agreement of 130 Countries to Support a Global Minimum Tax.]
- On July 6, 2021, Secretary Yellen met with European Commission Executive Vice President and Commissioner for a Europe Fit for the Digital Age Margrethe Vestager to discuss international taxation issues.
- On July 2, 2021, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 22 individuals connected to Burma’s military regime, including seven key members of Burma’s military and 15 individuals are the spouses or adult children of previously designated senior Burmese military officials.
In Her Own Words
- In a testimony before the Senate Finance Committee on June 16, 2021, Secretary Yellen said the Treasury department is looking at a “full range of tools” to protect U.S. national security and economic interests, but said that she “would worry somewhat about complete technological decoupling.” “If we are too broad in our policies in terms of how we approach this, we can lose the benefits that come from having globally integrated technology systems where advances in one country benefit countries worldwide,” she added. [Full testimony]
- In a June 10, 2021 testimony before the House Subcommittee on State, Foreign Operations, and Related Programs, Secretary Yellen highlighted four areas in the Treasury Department’s budget plan: funding for international financial institutions, low-income-country debt, funding for the IMF’s Poverty Reduction and Growth Trust and funding to support low-income nations with climate change.
- In a June 5, 2021 statement on G7 Finance Ministers’ Commitment to Global Minimum Tax, Secretary Yellen said that the G7 Finance Ministers “have made a significant, unprecedented commitment today that provides tremendous momentum towards achieving a robust global minimum tax at a rate of at least 15%.” [G7 Finance Ministers & Central Bank Governors Communiqué]
- On June 1, 2021, Secretary Yellen held what the Treasury termed “an introductory virtual meeting” with China’s Vice Premier Liu He, where Secretary Yellen discussed “the importance of cooperating on areas that are in U.S. interests, while at the same time frankly tackling issues of concern.” According to a Xinhua report, the two had a “candid” conversation.
In Her Own Words
- In April, 2021, the U.S. Department of Treasury released a report on the Made in America tax plan, which aims to eliminate incentives to offshore investment, reduce profit shifting, create a global agreement on minimum corporate tax and collect sufficient revenue to fund critical investment.
- On April 16, 2021, the U.S. Department of Treasury released the current report Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States that reiterates China’s active position as 1 of 11 countries in the Treasury’s Monitoring List and includes an economic analysis of China as the first of multiple Major Trading Partners. It also notes that “China has the largest trade surplus with the United States by far.”
- In a speech to the Chicago Council on Global Affairs on April 5, 2021, Secretary Yellen said that “the Biden-Harris Administration is committed to restoring U.S. leadership in the multilateral system.” She specifically noted:
We will cooperate with willing partners to protect and enforce a rules-based order. Our economic relationship with China, like our broader relationship with China, will be competitive where it should be, collaborative where it can be, and adversarial where it must be.
In addition to objectives such as strengthening the global economy, fighting against poverty and combating climate change, Secretary Yellen also said that the U.S. is working with G20 nations on “a global minimum corporate tax rate” that can stop the “thirty-year race to the bottom on corporate tax rates” and ensure “a more level playing field in the taxation of multinational corporations.”
- On March 25, 2021, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two military holdings companies in Burma to “specifically target the economic resources of Burma’s military regime, which is responsible for the overthrow of Burma’s democratically elected government and the ongoing repression of the Burmese people.”
- On March 22, 2021, the U.S. Department of Treasury sanctioned two current Chinese government officials “in connection with serious human rights abuses against ethnic minorities in the Xinjiang Uyghur Autonomous Region.” The Treasury actions complement similar measures taken by the European Union, the United Kingdom, and Canada.
- China responded by sanctioning several U.S. and Canadian officials, including the Chair and Vice Chair of the United States Commission on International Religious Freedom (USCIRF) and a Canadian lawmaker and parliamentary committee on human rights.
- On March 22, 2021, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two individuals and two entities connected to the Burmese military and its violent repression of pro-democracy protests. The decision was made “in response to the Burmese military’s continued campaign of violence and intimidation against peaceful protesters and civil society.”
Secretary Yellen spoke with her Indian counterpart on March 15, 2021, to emphasize “India’s role as a critical partner in Asia” and convey her intention for further collaboration. She also spoke with her counterpart of the Republic of Korea on March 16, 2021, to “reaffirm the importance of the U.S.-Korea alliance, and emphasized readiness to deepen economic and financial cooperation.”
In Her Own Words
- On February 11, 2021, the U.S. Department of Treasury “launched a new sanctions regime in response to the Burmese military’s coup against the democratically elected civilian government of Burma,” that includes 10 individuals and three entities “connected to the military apparatus responsible for the coup.”
“As the President has said, the February 1 coup was a direct assault on Burma’s transition to democracy and the rule of law,” said Secretary Janet L. Yellen. “The Treasury Department stands with the people of Burma — and we are doing what we must to help them in their effort to secure freedom and democracy.”
- In a letter to G20 colleagues on February 25, 2021, Secretary Yellen highlighted several tasks, from fighting against the pandemic, supporting low-income countries to addressing climate change. “This is a moment for action and for multilateralism,” he said.
Media
- Nikkei Asia, “Yellen vows ‘full array of tools’ to curb China’s abusive practices,” January 20, 2021
In Her Own Words
- Full Confirmation Hearing
- Responses by Dr. Yellen, Hearing on the Nomination of Dr. Janet Yellen, United States Senate Committee on Finance, January 21, 2021
Media
- CNBC, “What Janet Yellen’s nomination as Treasury secretary means for U.S. policy on China and trade,” December 1, 2020
- SCMP, “Joe Biden cabinet: US Treasury Secretary pick Janet Yellen faces huge challenge to reconcile China trade policy, support American economy,” November 24, 2020
- Asia Times Financial, “Biden’s US Treasury pick Janet Yellen brings China expertise,” November 24, 2020
In Her Own Words
Page Last Updated: January 14, 2022
*None of the personnel in this tracker are associated with the Institute for China-America Studies. All images used on this page are sourced from the official Biden-Harris transition website buildbackbetter.gov or the public domain.*
