US Treasury Secretary Janet Yellen cautions that severing economic ties between the United States and China would bring serious trouble to Washington. In a piece for the Washington Post, she argues that splitting the two largest economies would run counter to the core interests of the United States and its future prosperity.
Yet she also underscores the need to diversify supply chains in a world that remains unpredictable. The message is not about retreat from China, but about encouraging healthy, competitive dynamics that could yield benefits for both nations and for global markets. A resilient economic system, she notes, should be able to adapt to shocks and reduce overreliance on any single source or route, thereby strengthening national security and economic security alike.
According to Yellen, America’s strategic emphasis should be on unlocking domestic growth and expanding domestic economic potential rather than trying to suppress or police the success of other economies. She stresses that true progress comes from strengthening American capabilities and institutions, while maintaining practical cooperation where interests align. At the same time, she acknowledges that compromise cannot come at the expense of national security or the defense commitments that underpin alliances around the world.
Yellen asserts that the United States and China share a responsibility to address their differences in a manner that reduces the risk of a broader conflict. In her view, a bilateral relationship cannot be maintained solely through crisis management or firefighting during periods of tension. Instead, steady engagement, clear rules, and predictable economic policies are essential to steer the relationship toward more stable and constructive engagement over time.
There is an awareness that sanctions and policy tools used in one part of the world have repercussions that extend beyond borders. In recent years, authorities have observed how measures tied to Russia have affected trade flows, supply chains, and investment decisions. This context shapes a broader conversation about the way major economies coordinate risk, manage sanctions, and protect critical industries while preserving open trade where possible.
The overarching aim, as described, is to cultivate an environment where competition spurs innovation and productivity without erasing the benefits of cooperation. It is about building a more diversified, secure, and dynamic global economy—one in which the United States and its partners can respond to challenges with agility. The argument rests on the idea that national strength grows from a mix of domestic vitality and constructive international engagement, rather than from blanket decoupling or hostile tariffs that can backfire on households and businesses alike.