ISTANBUL

US Treasury Secretary Janet Yellen said Thursday separation of the American and Chinese economies would be "disastrous."

"We do not seek to decouple our economy from China's. A full separation of our economies would be disastrous for both countries," she told during her speech at Johns Hopkins School of Advanced International Studies.

"It would be destabilizing for the rest of the world. Rather, we know that the health of the Chinese and US economies is closely linked. A growing China that plays by the rules can be beneficial for the United States," she added.

Yellen argued that the Chinese economy in recent years has moved toward a more state-driven approach that has undercut its neighbors and countries across the world.

She said the US' economic approach to China has three objectives – to secure American national security interests, have a healthy economic relationship with China that fosters growth and innovation in both countries, and establish cooperation on global challenges.