“It is often well-understood that military leaders need to have quick and reliable means of communication to keep a crisis from spiralling out of control,” a transcript of the speech says.
03:47
‘Door to China-US relations will not be closed again’: Xi Jinping offers assurances to US businesses
‘Door to China-US relations will not be closed again’: Xi Jinping offers assurances to US businesses
“For economic policymakers responding to financial stress, it is also critical to know the counterpart on the other end of the line and be able to make a quick call.”
Efforts, Yellen is to note, are already underway to exchange information about modeling “climate stress” scenarios and about responding to the failure of a global systemically important bank in the US or China.
The financial and economic working groups that the two sides launched after her first trip to Beijing as treasury secretary in July will continue to meet regularly, according to the transcript.
A main focus of her speech will be the importance of greater transparency from China – which, Yellen will stress, is key to global financial stability.
After years of emulating West, China starts to turn on ‘predatory’ finance
After years of emulating West, China starts to turn on ‘predatory’ finance
“Understanding China’s plans, especially how China intends to respond to challenges with local government debt and the real estate market or how it might react if unexpected weaknesses in its economy should arise, is crucial,” the transcript says.
Yellen will signal that she won’t hold back raising concerns on issues the two sides disagree on, noting that discussing “difficult areas” is to be a “significant” part of her trip to China.
These areas include Beijing’s “national security actions” and other behaviours that can disadvantage the private sector.
“We will reinforce – alongside our partners and allies – that for a healthy economic relationship to be sustainable, it is essential that there is a level playing field for our firms and workers,” the transcript says.
She will also reiterate the US commitment to “clear communication” concerning actions it takes that will affect China, including its outbound investment and sanctions regimes.
Earlier this year, US President Joe Biden issued executive orders that further restrict China’s access to advanced technology.
In front of the gathering of top business leaders, Yellen also plans to outline opportunities of cooperation on anti-money-laundering, countering terrorist financing, and other global challenges like developing principles to achieve net-zero emissions.
She will highlight the counter-narcotics commitments Biden and Chinese President Xi Jinping made at the Asia-Pacific Economic Cooperation summit in Northern California last month.
“Continuing to stabilise our relationship to prevent escalation won’t make news. But our economies, our people … will be safer and more secure,” the transcript says.
