Treasury Secretary Janet Yellen expressed her concerns about China's treatment of U.S. companies during her trip to Beijing. Yellen criticized China's punitive actions against American firms and its recent decision to impose export controls on critical minerals. These actions have raised tensions between the two countries and justified the Biden administration's efforts to reduce reliance on China.

Yellen's comments were made during a meeting with American business leaders in China. She highlighted China's use of non-market tools, expanded subsidies for state-owned enterprises, and barriers to market access for foreign firms as major concerns. Yellen also mentioned the punitive actions taken against U.S. companies in recent months.

These concerns come in the wake of the Chinese government detaining employees of American consulting and management consulting firms operating in China. The scrutiny of American businesses followed the restrictions imposed by the Biden administration on China's access to critical semiconductor-making technology.

Yellen's trip to China is part of a larger effort to ease tensions and improve bilateral ties between the United States and China. The visit comes after Secretary of State Antony Blinken's recent trip to China. Although the visit is not expected to yield immediate results, it is significant in the context of the deteriorating relations between the two countries.

Both the United States and China have grievances against each other, with the United States accusing China of unfair economic practices and China accusing the United States of blocking fair access to its markets. These issues are likely to persist in the near future, but both sides recognize the need for diplomatic engagement to prevent further escalation.

Overall, Yellen's criticism of China's treatment of U.S. companies reflects the ongoing tensions between the two economic powerhouses and underscores the challenges they face in their efforts to move beyond their differences.

Sources:

- Alan Rappeport, "Yellen, in Beijing, Criticizes China's Treatment of U.S. Companies," The New York Times

- Kelly Ng & Rupert Wingfield-Hayes, "Yellen criticises Chinese curbs against US firms," BBC News

- Bloomberg, "Five Things You Need to Know to Start Your Day"