Janet Yellen, US Treasury chief, makes a pitch for a global trade route to India in her first visit.
Janet Yellen, US Treasury Secretary, has proposed a new model of global trade. She calls for ‘likeminded countries’ to collaborate to decrease the world’s dependence on ‘risky’ countries like China.
During her first visit to India as Treasury Secretary, Yellen stated that countries have been dependent for too long on single sources of critical inputs or risky countries.
She added, We are actively deepening economic integration avec trusted trading partners such as India.
During her visit to India, Yellen met with business leaders at Microsoft India Development Centre in Noida on Friday. This centre focuses on strengthening India’s economic ties.
I am here today to meet my counterpart, Finance Minister Nirmala Sitharaman. India-US economic ties are growing stronger and more solid with each passing day. She said that there are concerns about supply chain and she suggested that we should all work together.
As a sign of what Yellen calls friend shoring, Western companies already began shifting production away from China to countries like India or Vietnam in an effort to decrease their dependence on China.
Apple’s contract Indian manufacturers – Foxconn Wistron, Pegatron, and Wistron – are in an expansion phase. They have added more production lines to their facilities in order to counter a slowdown of iPhone manufacturing in China.
Yellen also mentioned the $648 million plan by First Solar, a US-based solar manufacturing firm, to build a 3.3 gigawatt facility (GW) in Tamil Nadu.
Yellen stated that the United States and India have a common interest in strengthening their supply chains in a world in which certain governments use trade as a geopolitical tool. As we pursue our friendship agenda, the United States will continue to strengthen our commercial and business ties with India.
The Treasury chief described a number of goals the US and India share, which should be priorities to the G-20. This includes the need for creditor countries to coordinate debt-relief programs for low- and middle-income countries through a G-20 program called the Common Framework.
She said, We welcome India’s leadership in the area, whether it be through an expansion or another multilateral framework.
Yellen used the occasion to criticize China for not participating in the program. She stated that the Common Framework had not fulfilled its promises, in large part due to China’s lack of cooperation.
Yellen called out Putin and said that the Russian president’s efforts to weaponize Europe’s gas supply in the aftermath of his invasion of Ukraine is an example of how malicious actor can use their market position to try to gain geopolitical influence or disrupt trade for their benefit.
We are facing a confluence in headwinds, Yellen stated, adding that ending Russia’s war in Ukraine was the single most important thing we can do for the global economy. This pivotal moment is currently in Yellen’s view.
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