U.S. Treasury Secretary Janet Yellen joined CNBC's Sara Eisen on “Worldwide Exchange” and shared details from her recent discussions with Chinese government officials regarding the country's trade practices.
What Happened: Yellen expressed concern about Chinese industrial policies, including government subsidies and manufacturing overcapacity, which have led to a flood of cheap clean-energy product exports around the world.
"We're not the only country that's concerned about a flood of Chinese exports wiping out important firms and industries within our country," Yellen told CNBC.
Why It Matters: Yellen said many Chinese firms are supported by government subsidies even when they are losing money and the cheap exports were pushing foreign companies out of business. She felt protections were needed to ensure American companies and workers will have a chance to benefit from the shift to clean-energy technologies in the future.
Related News: US Treasury Chief Yellen Pursues Closer China Ties But Calls Out Excess Manufacturing Concerns
Yellen also highlighted the need for the U.S. to build a domestic supply chain and manufacturing capacities within the budding clean energy industry as part of the national security strategy.
The Treasury Secretary explained the U.S. and other countries were looking for China to shift its macroeconomic policy and reduce subsidies to firms operating in clean energy industries, including solar panels, electric vehicles and lithium ion battery production.
Yellen said Chinese officials agreed to "continue an intensive dialogue' on the issue, and she disclosed tariffs are being considered as part of a strategy to level the playing field.
"I wouldn't rule anything out at this point," Yellen said.
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