US willing to take 'targeted' actions against China for national security, Treasury official says
WASHINGTON (Reuters) — U.S. Treasury Undersecretary Jay Shambaugh said on Wednesday the Biden administration will not hesitate to take targeted actions against China to secure the national security interests of the U.S. and its allies and to protect human rights, but added that the two countries must cooperate on global challenges.
In prepared testimony before the U.S. Senate Foreign Relations Committee, Shambaugh said economic decoupling would be «disastrous» for both the U.S. and China and nearly impossible to achieve.
«When necessary, we will use a suite of tools to achieve our national security goals. It is our core mission to protect the American people from national security risks while also clearly communicating our position and intent to China to reduce the risk of misunderstanding,» said Shambaugh, who heads Treasury's international affairs.
The Biden administration is weighing new restrictions on outbound private investment into China and other countries of concern. The Senate voted overwhelmingly on Tuesday to back legislation that would require U.S. companies to notify federal agencies of proposed investments in Chinese technologies such as semiconductors and artificial intelligence.
«To be clear: neither targeted national security actions nor attempts to build diversified supply chains represent decoupling,» Shambaugh said in the prepared remarks. «We seek a fair and healthy economic relationship that benefits both countries and supports American workers and businesses.»
U.S. Treasury Secretary Janet Yellen visited Beijing earlier this month to reopen communications and make the same points to China's economic leaders, saying the trip put the relationship on «surer footing,» though the world's two largest
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