By FATIMA HUSSEIN and HYUNG-JIN KIM – Associated Press
SEOUL, South Korea (AP) — The United States and South Korea should deepen their trade relationship to avoid letting other countries use their market positions to unfair advantage, Treasury Secretary Janet said Tuesday. Yellen during a visit where she also urged the US ally to support a plan to seek a cap on Russian oil prices.
Soaring energy prices figured prominently in the meetings in Seoul. During his talks with Yellen, South Korean President Yoon Suk Yeol called for international cooperation to stabilize energy prices and ease supply chain disruptions that have contributed to high inflation for decades. Yoon’s office said.
In remarks at a research and development center run by LG, one of South Korea’s biggest business groups, Yellen said Russia was threatening to trigger a global food crisis by blocking ports in Ukraine after its invasion of the country has caused a spike in energy prices.
People also read…
“All responsible countries must unite to oppose this war and work together to end it quickly,” Yellen said. “And that is why the United States and other responsible allies and partners are seeking to cut Russia’s revenues to wage its war without causing the necessary volatility in global energy markets.”
In response to Yellen’s call for support for the price cap system, South Korean Deputy Prime Minister and Minister of Economy and Finance Choo kyung-ho said his country was willing to participate and that the plan had to be formulated in such a way as to help stabilize world oil. and consumer prices, the ministry said in a statement.
In April, LG announced plans to build a $1.4 billion battery factory in Queen Creek, Arizona. The United States has hailed these investments as a way to reduce American dependence on supply chains that may be vulnerable to political antagonism or disruptions like those that have occurred during the pandemic.
“We cannot allow countries like China to use their market position in key commodities, technologies or products to disrupt our economy or exert unwanted geopolitical leverage,” Yellen said during the talk. meeting at LG premises.
China “has devoted significant resources to seeking a dominant position in the manufacture of certain advanced technologies, including semiconductors, while employing a range of unfair trade practices to achieve this position”, she said. declared.
Yellen also criticized China’s economic relations with Moscow — urging the Asian superpower to use its ‘special relationship with Russia’ to persuade him to end his invasion of Ukraine.
Yellen called on countries to engage in what she called “friend-shoring” to reduce economic risks for participating economies.
Friend-shoring, which Yellen has referred to in several speeches, refers to countries with shared values that accept business practices that encourage manufacturing and reduce risk to supply chains.
“The goal is to reduce risk to our economy and theirs,” Yellen said. “In doing so, we can help insulate U.S. and Korean households from disruption price increases caused by geopolitical and economic risks and make it easier for our businesses to access vital inputs and products, from medicines to semiconductors to electric vehicle batteries.
During his visit to Seoul, Yellen also met with Bank of Korea Governor Rhee Chang-yong. She stopped in South Korea on her way back to Washington after attending a meeting of the Group of 20 financial leaders on the Indonesian resort island of Bali over the weekend. She visited Tokyo on her way to Bali. It was her first trip to the region since becoming Treasury Secretary.
Hussein reported from Washington.
Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.