US Treasury Secretary Janet Yellen warned Wednesday that China’s position on Russia threatened “integration” into the global economy, calling for reforms of major global economic institutions such as the IMF.
“The world’s attitude towards China and its willingness to embrace deeper economic integration are likely to be influenced by China’s reaction to our call for decisive action against Russia,” the minister warned. Council, American Thinking Tank.
“The war in Ukraine and sanctions against Russia highlight China’s central role,” the Treasury Secretary said.
Despite the Ukrainian invasion, Beijing remained a partner in Moscow. “China recently confirmed a special relationship with Russia. I sincerely hope that China will do something positive about this relationship and help end the war,” Yellen said.
He warns Asian giants that “in the future it will be increasingly difficult to separate economic issues from broader considerations of national interests, including national security.”
The minister, in a broader sense, blamed countries and businesses that have not broken their commercial ties with Russia, and these nations will undoubtedly “fill the void left by others by maintaining ties with Russia.” I hope. This kind of motive does not last. ” In the long run “.
The United States and its western allies have imposed several economic and financial sanctions on Russia, including asset freezes and a ban on transactions with major Russian banks.
These measures must “force the Kremlin to choose between supporting its economy or funding the continuation of (Vladimir) Putin’s brutal war,” Janet Yellen recalled.
Reform of international organizations
The Treasury also said the war in Ukraine showed the need to develop organizations such as the International Monetary Fund, calling for reforms of major global economic institutions.
“We need to modernize our existing institutions (IMF and Multilateral Development Banks) to adapt to the increasingly globalized 21st century of challenges and risks,” she said. IMF and World Bank. This is also done in hybrid mode.
Yellen specifically called for consideration of “institutional governance to ensure that both the current world economy and the Member States’ commitment to the IMF’s underlying principles and objectives are reflected.”
“I don’t think we need to invent a whole new financial architecture, but we need to be able to meet modern challenges,” she identified in a question-and-answer session.
“Some may say it’s not time to think big,” the minister admitted. “But now I think it’s a good time to fix the flaws in our international financial system. It’s causing us real-time problems.”
Beyond the situation in Ukraine, next week’s conference will also focus on vaccine delivery, fighting global warming, and helping low-income countries, Janet Yellen said.