Janet Yellen said the US and China have a responsibility to work together. Reuters
Janet Yellen said the US and China have a responsibility to work together. Reuters
Janet Yellen said the US and China have a responsibility to work together. Reuters
Janet Yellen said the US and China have a responsibility to work together. Reuters

US seeks healthy economic ties with China but security remains top priority, Yellen says


Kyle Fitzgerald
  • English
  • Arabic

Treasury Secretary Janet Yellen on Wednesday said the US seeks a “healthy economic relationship” with China but added that national security remains the highest priority — even if it affects the economy.

Ms Yellen's remarks at Johns Hopkins University’s School of Advanced International Studies came a month after Chinese Foreign Minister Qin Gang accused Washington of inflaming tension between the two nations.

Her speech presented a more positive outlook for the US and China, as she called for the two economic powers to pursue a relationship that would allow them to jointly tackle global challenges such as climate change and debt burdens.

“Progress on these issues requires constructive engagement between the world’s two largest economies,” Ms Yellen said. “Yet our relationship is clearly at a tense moment.”

Relations between Washington and Beijing faltered after a surveillance balloon was spotted soaring over the contiguous US. Taiwan also remains a fraught issue.

Reiterating her faith in the long-term strength of the US economy, Ms Yellen said Washington remains firm in defending its values and national security.

“Within that context, we seek a constructive and fair economic relationship with China,” she said.

Ms Yellen also said that the US and China have a responsibility to work together.

“China and the United States can and need to find a way to live together and share in global prosperity,” she said.

“We can acknowledge our differences, defend our own interests and compete fairly.”

Tackling debt relief and climate change

The US Treasury Secretary said two major economic powers should collaborate on solutions for climate change and debt, but criticised Beijing for acting as a “roadblock” in the debt restructuring process.

“China’s participation is essential to meaningful debt relief,” she said. “But for too long, it has not moved in a comprehensive and timely manner.”

Ms Yellen said debt overhang in low- and middle-income countries such as Zambia has a negative effect on investment and development.

At the same time, she again welcomed China's involvement in helping Sri Lanka secure a bailout from the International Monetary Fund and called on Beijing's “full participation” for similar cases in Zambia and Ghana.

Ms Yellen said working on such cases is a “true test” of multilateralism.

She also noted that China and the US are the world's largest emitters of greenhouse gases.

The US expects China to deliver on commitments made at Cop26, including mitigation targets and ending the financing of coal-operated power plants overseas, she said.

National security remains top concern, even if it comes at a cost

Although she laid out a more positive road map for the two countries, Ms Yellen said national security and human rights remain the two highest priorities for the US.

“We will not compromise on these concerns, even when they force trade-offs with our economic interests,” she said.

  • The suspected Chinese spy balloon drifts to the ocean after being shot down off the US coast, as seen from South Carolina. Reuters
    The suspected Chinese spy balloon drifts to the ocean after being shot down off the US coast, as seen from South Carolina. Reuters
  • President Joe Biden congratulated fighter pilots for taking down the suspected spy balloon. AFP
    President Joe Biden congratulated fighter pilots for taking down the suspected spy balloon. AFP
  • The balloon seen from Holden Beach. Reuters
    The balloon seen from Holden Beach. Reuters
  • Spectators watch from the coast. Reuters
    Spectators watch from the coast. Reuters
  • A jet flies by the balloon. Reuters
    A jet flies by the balloon. Reuters
  • Another spectator watches after the balloon was shot down. Reuters
    Another spectator watches after the balloon was shot down. Reuters
  • The suspected Chinese spy balloon over Billings, Montana. AFP
    The suspected Chinese spy balloon over Billings, Montana. AFP

Ms Yellen scorned Beijing's “no limits” relationship with Russia and warned China not to help Moscow evade sanctions.

“The consequences of any violations would be severe,” she said.

Ms Yellen said the US “will not hesitate to defend our vital interests” and added that any actions undertaken by Washington are not designed to gain an economic advantage.

She said she hopes to visit China at “the appropriate time” to engage in substantive dialogue on economic issues.

Australia men's Test cricket fixtures 2021/22

One-off Test v Afghanistan:
Nov 27-Dec 1: Blundstone Arena, Hobart

The Ashes v England:
Dec 8-12: 1st Test, Gabba, Brisbane
Dec 16-20: 2nd Test, Adelaide Oval, Adelaide (day/night)
Dec 26-30: 3rd Test, Melbourne Cricket Ground, Melbourne
Jan 5-9, 2022: 4th Test, Sydney Cricket Ground, Sydney
Jan 14-18: 5th Test, Optus Stadium, Perth

SPECS

Nissan 370z Nismo

Engine: 3.7-litre V6

Transmission: seven-speed automatic

Power: 363hp

Torque: 560Nm

Price: Dh184,500

Results

2pm: Al Sahel Contracting Company – Maiden (PA) Dh50,000 (Dirt) 1,200m; Winner: AF Mutakafel, Tadhg O’Shea (jockey), Ernst Oertel (trainer)

2.30pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,200m; Winner: El Baareq, Antonio Fresu, Rashed Bouresly

3pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,950m; Winner: Lost Eden, Andrea Atzeni, Doug Watson

3.30pm: Keeneland – Handicap (TB) Dh84,000 (D) 1,000m; Winner: Alkaraama, Dane O’Neill, Musabah Al Muhairi

4pm: Keeneland – Handicap (TB) Dh76,000 (D) 1,800m; Winner: Lady Snazz, Saif Al Balushi, Bhupat Seemar

4.30pm: Hive – Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer

5pm: Dubai Real Estate Centre – (TB) Handicap Dh64,000 (D) 1,600m; Winner: Lahmoom, Royston Ffrench, Salem bin Ghadayer

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
PREMIER LEAGUE FIXTURES

Tuesday (UAE kick-off times)

Leicester City v Brighton (9pm)

Tottenham Hotspur v West Ham United (11.15pm)

Wednesday

Manchester United v Sheffield United (9pm)

Newcastle United v Aston Villa (9pm)

Norwich City v Everton (9pm)

Wolves v Bournemouth (9pm)

Liverpool v Crystal Palace (11.15pm)

Thursday

Burnley v Watford (9pm)

Southampton v Arsenal (9pm)

Chelsea v Manchester City (11.15pm)

Race card

1.30pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m

2pm: Handicap (TB) Dh 84,000 (D) 1,400m

2.30pm: Maiden (TB) Dh 60,000 (D) 1,200m

3pm: Conditions (TB) Dh 100,000 (D) 1.950m

3.30pm: Handicap (TB) Dh 76,000 (D) 1,800m

4pm: Maiden (TB) Dh 60,000 (D) 1,600m

4.30pm: Handicap (TB) Dh 68,000 (D) 1,000m

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press

'Outclassed in Kuwait'
Taleb Alrefai, 
HBKU Press 

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Power: 240hp at 5,500rpm

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Updated: April 20, 2023, 4:38 PM