U.S. Treasury Secretary Janet Yellen testifies throughout a listening to earlier than the Monetary Companies and Common Authorities Subcommittee of the Home Appropriations Committee at Rayburn Home Workplace Constructing on Capitol Hill on March 21, 2024 in Washington, DC. Alex Wong | Getty ImagesTreasury Secretary Janet Yellen on Wednesday warned that China is treating the worldwide financial system as a dumping floor for its cheaper clear power merchandise, miserable market costs and squeezing inexperienced manufacturing within the U.S.”I’m involved about international spillovers from the surplus capability that we’re seeing in China,” Yellen mentioned throughout a speech at a Georgia photo voltaic firm referred to as Suniva. “China’s overcapacity distorts international costs and manufacturing patterns and hurts American corporations and staff, in addition to corporations and staff world wide.”China has a surplus of solar energy, electrical autos and lithium-ion batteries that it might probably ship out to different international locations at cheaper costs. That makes it troublesome for the extra adolescent inexperienced manufacturing industries of the U.S. and elsewhere to compete.Yellen mentioned she intends to place strain on Chinese language officers about these commerce practices throughout her upcoming go to to China.”I plan to make it a key subject in discussions throughout my subsequent journey there,” she mentioned. “I’ll press my Chinese language counterparts to take obligatory steps to deal with this subject.”The secretary’s issues come because the White Home tries to construct a burgeoning clear power trade domestically with investments from the 2022 Inflation Discount Act, together with different laws just like the CHIPS and Science Act.Yellen has recurrently touted the positive factors from these investments, together with at one other latest speech the place she doubled down on the electrical automobile “growth” spurred by the IRA.However these investments are taking part in catch-up with China’s authorities.”The Biden Administration additionally acknowledges that these investments are new,” Yellen mentioned Wednesday.In the meantime, China has been pouring billions into clear power for years, outpacing the remainder of the world within the power transition.Yellen added that the extra China’s clear power glut interferes with international market costs, the more serious off provide chains for these power sectors will likely be.”President Biden is dedicated to doing what we are able to to guard our industries from unfair competitors,” Yellen mentioned. The Chinese language Embassy in Washington didn’t instantly reply to a request for remark.Yellen’s feedback spotlight ongoing U.S.-China commerce stress at the same time as the 2 international locations attempt to regular relations.Learn extra CNBC politics coveragePresident Joe Biden met with Chinese language President Xi Jinping in November as an olive-branch effort to interrupt the ice after years of stress, marked partly by a tariff struggle launched by former President Donald Trump.Trump has floated reinstating important tariff ranges on Chinese language merchandise if he wins a second presidential time period.Within the time for the reason that Biden-Xi assembly, strengthening U.S.-China relations has confirmed a precarious effort as a result of ongoing cybersecurity and commerce issues.In February, Biden launched an investigation into Chinese language good automobiles, which he mentioned pose a nationwide safety threat as a result of they connect with U.S. infrastructure after they drive on American roads.”China is decided to dominate the way forward for the auto market, together with by utilizing unfair practices,” Biden mentioned in a February assertion. “China’s insurance policies might flood our market with its autos, posing dangers to our nationwide safety. I am not going to let that occur on my watch.”Don’t miss these tales from CNBC PRO: