On Wednesday, US Undersecretary of the Treasury Jay Shambaugh stated that the Biden administration is ready to take specific actions against China to protect the national security interests of the US and its allies, as well as to protect human rights.
However, he emphasized the importance of cooperation between the two countries in addressing global challenges.
In his prepared testimony before the US Senate Foreign Relations Committee, Shambaugh said the severance of economic ties between the US and China would be "a disaster" for both countries, but said it was highly unlikely to happen.
"When necessary, we will use a variety of tools to achieve our national security goals. It is our primary mission to protect the American people from national security threats, while also clearly communicating our position and intent to China to reduced the risk of misunderstanding," said Shambaugh, who directs the Treasury's international affairs.
The Biden administration is considering imposing new restrictions on private investment going from the US to China and other countries.
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The Senate has already voted in favor of legislation requiring US companies to inform federal agencies of their proposed investments in Chinese technologies, such as semiconductors and artificial intelligence.
US Undersecretary of the Treasury, Jay Shambaugh, clarified that these actions are not about the complete severance of ties.
Instead, they aim to achieve a "fair and healthy economic relationship that benefits both countries while supporting American workers and businesses."
Recently, US Treasury Secretary Janet Yellen visited Beijing to restore communication and convey similar messages from the Biden administration to China's economic leaders.
However, despite efforts to improve relations, deep divisions between the two countries persist.
The United States has raised concerns about China's "non-commercial" economic practices and excessive government intervention, which create disadvantages for American companies.
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The US also opposes China's use of "economic coercion" to punish countries for diplomatic actions by imposing restrictions on imports or exports.
Shambaugh, who took over as the Treasury's top economic diplomat in January, said the US and China must also be able to cooperate on pressing global challenges, such as climate change and the growing debt burden of developing countries. /REL
