US Treasury Secretary Yellen hopeful of China cooperating to provide debt relief to Sri Lanka

US Treasury Secretary Janet Yellen yesterday expressed confidence in China cooperating with other countries seeking to provide debt relief to distressed countries, specially Zambia and Sri Lanka.

Addressing a news conference ahead of the G20 Summit in Bengaluru, India, Yellen said communication between the United States and China was necessary for “the sake of the entire globe.”

As per a news report by Reuters, the US Treasury Secretary affirmed that discussions with China on economic issues would resume “at an appropriate time”, but warned Beijing of the consequences of violating U.S. sanctions on Russia.

Following the downing of a suspected Chinese surveillance balloon that floated over the continental United States, some engagements between Washington and Beijing have been suspended. This has left the timing of previously planned visits to China by Yellen and Secretary of State Antony Blinken unclear.

Yellen said she did not have any details on the timing of her visit focused on economic and financial issues, but said: “I believe we will resume at an appropriate time those discussions,” according to Reuters.

Turning to U.S. sanctions on Russia over its war in Ukraine, Yellen reiterated Washington’s warnings.

“We have made clear that providing material support to Russia or assistance with any type of systemic sanctions evasion would be a very serious concern to us.

“And we will certainly continue to make clear to the Chinese government and to companies and banks in their jurisdictions what the rules are regarding our sanctions and the serious consequences that they would face in violating them,” she said.