Yellen’s message
Yellen’s words were a clear message to Beijing of the dangers of inflaming trade tensions, given that 2024 is a US election year and anti-Chinese sentiment on both sides of American politics is running high.
Even as Yellen was meeting with senior Chinese officials, the Biden administration unveiled a fresh $US6.6 billion ($10 billion) in grants to Taiwan Semiconductor Manufacturing Company, the leading maker of the most advanced microchips, as part of a drive to attract the world’s most sophisticated semiconductor technology to the US.
The Biden administration is spending trillions of dollars to bolster US manufacturing of items such as semiconductors, lithium-ion batteries, solar panels and electric vehicles (EV) to reduce the country’s dependence on China.
The problem is the financial viability of these very industries is being threatened by a flood of Chinese exports, which could result in job losses and…
