In an interview with Bloomberg on Monday, US Treasury Secretary Janet Yellen said that there is a good chance that they will go ahead with outbound investment controls on China, per Reuters.
Key takeaways
“China has seen slower growth than expected after covid reopening.”
“Chinese consumers are more focused on rebuilding savings; Chinese are concerned about sluggish growth.”
“Not expecting a recession in the US.”
“Making progress in getting inflation down.”
“US tariffs on China reflected concern about unfair trade practices, those have not been addressed.”
“US actions on China are not ‘tit for tat’, they reflect national security concerns.”
“US is looking carefully at outbound investment controls on China, but they would be focused on a few sectors.”
“These would not be broad controls that would have fundamental impact on investment climate in China.”
“US has expressed concerns to China about hacking of government officials, private individuals.”
Market reaction
These comments don’t seem to be having a significant impact on risk mood. As of writing, US stock indx futures were trading little changed on the day.
Source: https://www.fxstreet.com/news/us-treasury-sec-yellen-good-chance-will-go-ahead-with-outbound-investment-controls-on-china-202307171243