US importing from key partners like India, less dependent on China: Yellen

Stating that the US is committed to an Indo-Pacific that is free and open, Secretary of Treasury Janet Yellen said that Washington is increasing its trade with countries like India, Vietnam and Mexico reducing its dependence on China.

Yellen said that she along with President Biden will head Asia-Pacific Economic Cooperation (APEC) Leaders' Week later this month in California.

"Recognizing this big picture, the Biden Administration is pursuing an approach to the Indo-Pacific that furthers our country's long history of engagement and does justice to the region's importance for our and the world's future," Yellen said in a statement.

"US is committed to an Indo-Pacific that is free and open, connected, prosperous, secure, and resilient," she added.

The US Treasury Secretary said that the Biden administration is working to tackle challenges and seize opportunities and is also deepening economic integration and harnessing technological transformation.

She further highlighted three priorities to showcase the US' economic strategy in the Indo-Pacific region; increasing trade and investment, bolstering our economic resilience, and cooperating on global challenges.

"First, the Biden Administration is committed to expanding our trade and investment with Indo-Pacific countries. Trade between the US and the Indo-Pacific region has steadily increased over the past decade, reaching USD 2.28 trillion in 2022. It has increased over 25 per cent since just 2019, despite a pandemic dip. Indeed, trade in most sectors recovered to pre-pandemic levels by 2021 and then continued to grow.

It added, "Across sectors from auto parts to electronics, the US is importing more from key partners like India and Vietnam, as well as from Mexico, and is less dependent on one single country, in this case, China".

She further said that the economic engagement with the Indo-Pacific is needed to address the urgent global challenges of our time.

"The Indo-Pacific region is highly vulnerable to climate change. A significant majority of the region's population is dependent on the oceans. And Pacific Islands face the increasingly likely possibility of losing land due to sea level rise, with severe potential consequences for their people and economies. The interconnectedness of our economies and our shared goal of a viable future on this planet leaves us no choice but to support Indo-Pacific countries in addressing these challenges and realizing the opportunities of the energy transition," she said.

Stating that the Indo-Pacific is at the center of the 21st-century global economy, the US Treasury Secretary said that the growth and innovation in the US, paired with its engagement in the region, is helping realize the tremendous potential of the region.

"From the Quad to IPEF, from Vietnam to India, we are increasing trade and investment, bolstering our supply chains, and addressing global challenges. And at APEC later this month and far beyond it, we will only continue to expand and deepen our engagement. Jobs and security at home in the United States, the growth and resilience of Indo-Pacific economies, and the strength of our global economy depends on it," Yellen added.