Yellen says ‘no alternative’ to dollar, urges US-China cooperation for sake of the world
Former US Treasury secretary, in Hong Kong, discusses China’s ‘serious conflicts’ with other economies in trade, while warning of decoupling risks
A decoupling between China and the United States is something “that you don’t want to see”, says former US Treasury secretary Janet Yellen, adding that both countries have developed deep trade and investment relationships that should be preserved and encouraged to thrive.
These are the issues that Washington must address through negotiations, she said.
In the face of “huge global problems”, the US and China “really need to cooperate” to address the world’s issues, Yellen said during a panel discussion at the summit. As an example, she pointed to some successful efforts to tackle climate change through bilateral cooperation.
Yellen, having served as US Treasury secretary under the presidential administration of Joe Biden from 2021 to 2025, said Middle East conflicts create economic uncertainties and supply shocks that could put more pressure on inflation.
Regarding US-China collaboration, Yellen singled out artificial intelligence as an area with significant threats, requiring the US and China to cooperate to ensure the safety of AI systems.
“We should preserve the ability to work together on common things that affect not only our two countries, but the entire globe,” she contended.
Known for advocating a more constructive relationship with China, Yellen reckoned that there were national security threats and economic concerns regarding Chinese practices, and she pointed to Beijing’s leverage over rare earths and magnets.
“We need to take our own supply-chain resilience seriously,” she said. “We do have legitimate concerns about overdependence on China.”