January 6, 2025 – US Treasury Secretary Janet Yellen has raised serious concerns with Beijing regarding “malicious cyber activity” by Chinese state-sponsored actors. This comes just days after the US Treasury Department reported a breach in December 2024, which resulted in unauthorized access to some of its workstations and unclassified documents.
In a virtual meeting with Chinese Vice-Premier He Lifeng, Yellen expressed her concerns about the impact of such cyber activities on the US-China relationship. The Treasury Department stated that Yellen highlighted the seriousness of the issue and its potential repercussions on bilateral ties.
Beijing, however, has rejected the accusations, calling them “groundless.” The Chinese foreign ministry reiterated that China opposes all forms of hacker attacks and condemned the spread of false information against China for political purposes.
Yellen’s discussions with He come shortly before President-elect Donald Trump is set to return to the White House later in January. Trump’s first term saw escalating tariff wars with Beijing, and there are concerns that tensions could rise again between the world’s two largest economies.
During the meeting, Yellen also warned Beijing about “China’s non-market policies and practices and industrial overcapacity,” which she stated would negatively impact bilateral relations unless addressed. The two officials also reviewed macroeconomic developments in both countries and took stock of efforts by economic and financial working groups that they had previously established.
The Treasury Department emphasized the importance of communication and contact between the two sides to manage the competitive relationship effectively.
