Markets Wired

As Prepared for Delivery

Hello everyone and thank you for joining today. 

I’ve been very glad to chair the 2023 Finance Ministers’ Meeting here in San Francisco over the past two days. And the United States has been proud to host APEC throughout this year. Hosting APEC is one of the many ways the Biden Administration is broadening and deepening our economic ties across Asia-Pacific economies. APEC economies are at the center of the global economy and our world’s economic future. The United States’ engagement with other APEC economies strengthens the U.S. economy, benefits American workers and firms, and advances American interests. It’s bringing significant benefits to the region as well. And cooperation across APEC economies is also key to tackling the challenges we all face, including the urgent threat of climate change.

Over the past year, APEC members have advanced our shared vision of an open, dynamic, resilient, and peaceful Asia-Pacific region through finance track engagements. And today’s Finance Ministers’ Meeting allowed us to cement progress on key priorities: from monitoring macroeconomic and financial developments in the region and globally, to advancing our approaches to regulation of digital assets, sustainable finance, and inclusive growth-oriented policies consistent with what I’ve called modern supply-side economics. 

I’ll start there. APEC members have affirmed a shared interest in pursuing policies that expand the productive capacity of our economies while also achieving outcomes like reducing inequality and protecting the environment. In the United States, we’re doing this through a historic trifecta of legislation: President Biden’s Bipartisan Infrastructure Law, CHIPS Act, and Inflation Reduction Act. I’m very pleased that other APEC economies recognize the potential of this strategy and are pursuing similar policies, including ones that support research and development, invest in infrastructure, and drive labor force participation. 

We’ve also aligned on the importance of addressing global challenges. Our joint work centers on unlocking the flow of sustainable finance, including through exploring ways to drive the development of credible climate commitments and to create effective and high integrity voluntary carbon markets. We also agree that engagement with the private sector is critical, as is engagement with international financial institutions. The Biden Administration’s efforts to accelerate the transition to a net-zero economy range from our launch of the Principles for Net-Zero Financing and Investment, to our call to evolve the multilateral development banks, to our support for the transition to clean energy in economies including Indonesia and Vietnam through Just Energy Transition Partnerships. Our discussions have revealed the ways other APEC members are also pursuing meaningful work.

There is also commitment to continued work on the responsible development of digital assets, where many APEC economies are leading the way. We see increasing adoption of digital asset technologies across the region and note their potential to increase financial inclusion and reduce the cost of cross-border transactions. We also recognize that digital asset technologies carry risks, however, and appreciate the need for proper regulation and other policies to manage those risks. 

Of course, chairing the APEC Finance Ministers’ Meeting is only one aspect of the United States’ much broader commitment to deepening our engagement across the Asia-Pacific region. As one example, Treasury is actively engaged in the ongoing work to reach a substantial conclusion of the Indo-Pacific Economic Framework. This would be a monumental achievement for IPEF members, addressing issues from climate change to supply chain security. And since IPEF members collectively account for 40 percent of global GDP, it would be significant for the global economy as well.  

Responsibly managing the U.S.-China economic relationship has also been a key priority throughout my time in San Francisco. As you know, I met with Vice Premier He Lifeng, my Chinese counterpart, here last week. And I had a productive meeting with China’s new Finance Minister, Lan Fo’an, this week. President Biden and I believe strongly in advancing the values we share with our allies and partners, in the Asia-Pacific and beyond, while also pursuing a healthy and stable economic relationship with China. Going forward, we hope to build on the foundation we’ve laid to further deepen communication, stabilize the relationship, and make progress on key policy issues. There is hard work ahead of us, but I believe our engagements here have moved us along the right path.

As the United States nears the end of a productive APEC host year, I am impressed by all we’ve collectively accomplished across our priority areas. We congratulate Peru on its upcoming host year and look forward to supporting its work. And through APEC and otherwise, the United States will remain committed to deepening our economic ties with the Asia-Pacific. Advancing our shared vision is crucial to the success of Asia-Pacific economies, and it supports jobs, growth, and resilience at home in the United States as well.

I’ll take your questions. 

 

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