US warns China of ‘severe’ consequences for helping Russia

US Treasury Secretary Janet Yellen says Washington seeks "constructive and fair" economic ties with China, while warning that the consequences would be "severe" if Beijing provided any material support or assistance to Russia in violation of US sanctions.

Speaking at Johns Hopkins University's School of Advanced International Studies, Yellen on Thursday listed the Biden administration's principal objectives for what she called an "essential" economic relationship between the world's two largest economies, Reuters reported.

"Our relationship is clearly at a tense moment," said Yellen, who has said she still plans to visit Beijing to meet with her new Chinese economic counterparts. "My goal is to be clear and honest, to cut through the noise and speak to this essential relationship, based on sober realities."

Yellen claimed the United States remained the world's largest and most dynamic economy, leading in areas ranging from wealth to technological innovation.

She added that she believed a growing China was in the interest of both countries, as long as it followed global rules.

“A growing China that plays by international rules is good for the United States and the world,” Yellen said. “Both countries can benefit from healthy competition in the economic sphere. But healthy economic competition — where both sides benefit — is only sustainable if that competition is fair.”

At the same time, “safeguarding certain technologies from the PRC’s military and security apparatus is of vital national interest,” said the former Federal Reserve chief.

“We will secure our national security interests and those of our allies and partners, and we will protect human rights,” Yellen said. “We will clearly communicate to the PRC our concerns about its behavior.”

“We seek a healthy economic relationship with China: one that fosters growth and innovation in both countries,” Yellen said.

She called China's "no limits" partnership with Russia "a worrisome indication” and claimed that Beijing is not serious" about ending Russia's war against Ukraine.

"It is essential that China and other countries do not provide Russia with material support or assistance with sanctions evasion," she said, warning that the consequences of any violations would be "severe."

Tensions between Beijing and Washington are high, strained by the pandemic, the economy and other issues.

China has rejected US assertions and said the US is fueling the conflict in Ukraine by sending weapons worth billions of dollars to Kiev.

China says it is ready to boost cooperation with the Russian military in order to jointly uphold international justice, peace and security.

MG