Janik yelling between the United States and china. During her remarks, she threatened sanctions on my knees founder 80 russia and its workings ukraine. T i like to begin by speaking about the groundwork for the past year. Last april i outlined the approach president s biden and i clear out about this relationship. Our priorities include acting National Security in our allies for the healthy economic relationship level Playing Field for American Workers and firms cooperating on china with both countries can and must. Its undeniable the u. S. China relationship is on a stronger footing today than this time last year. This was not preordained. It was the direct result of the guidance in his cabinet china and put a floor under the relationship have met with my chinese counterpart three times including the San Francisco bay area where i called my second home. Groups with indepth conversations on instructor meetings between President Biden and resident xi jinping in california last november. My team and i have been able to advance the interest of the American People. We set forth Economic Policy priorities and gain and improve understanding of china. In short American Workers are treated fairly. Directly communicated american National Security concerns and. Clarified potential misunderstanding to prevent intentional escalation. Started on issues where are interest coincides. Weve taken the important step including a commitment to work toward healthy economic relationship provides a level Playing Field for both countries. This Progress Matters given the size of our economy u. S. China economic relationship is among the most important economic relationship in the world and it matters deeply for firms in term the American People inspect their leaders to do the hard work of economic pharmacy. Its not the time always generates headlines, its one thing keeps at it despite the noise to advance responsible approach the challenges we face. President biden and i are permitted to such an approach. Over the past week ive had the opportunity to make progress on issues that matter to americans. I cant productive direct extensive meetings in beijing chinas Economic Leadership including vice premier, governor and ive met outside of the Central Government including businesses, 90s academics and students ande local government leaders practical on the ground Economic Policy responsibilities. Let me outline three areas we made significant progress this week. First, vice premier and i agreed to launch intensive exchanges on balanced growth domestic and global economies. This g represents an important part of my effort to advocate for American Workers and businesses in game a better understanding of certain prc Macro Economic policies. Let me explain. During conversations this week. Our two economies are deeply integrated in a separate ocean will be disastrous for both of our economies. We take action to diversify to these firms. China is a key market for services. Competition between our firms innovation in American Industries. When i spoke to, its underscore significant benefits in this relationship at the same time, i expressed concern to senior chinese officials those features of the chinese economy is growing negative spillover select u. S. And the globe. Chinas enduring microeconomic imbalances, the consumption and Business Investment aggravated by large scale support and sectors to advocate workers and businesses in the u. S. And the rest of the world. China has long had access savings and Government Bond infrastructure and absorbed much of it. Now an increase in Business Investment and a number of new industries targeted byer the prs policies and that includes electric vehicles, batteries and solar. China is now simply too large for the rest of the world for this enormous capacity. American and foreign firms put into question. We seen the story before over a decade ago, passive government supportgo with low cost chinese field athletic the Global Market for industries across the world and the United States. Ive madee clear President Biden and i will not send that reality again. I know these serious concerns are shared by our allies and partners from advanced economies to emerging markets. Chinese excess capacity buildup over a significant amount of time in our concerns will not be result in the weeks or months. From these changes weve announced will provide dedicated doctor to raise concerns about chinas imbalances and overcapacity among a wide range of other topics in detail in targeted manner. We underscore the ship ozzie by china during these talks on two hours ive spent on this topic with the vice premier last week. This is part o advocate for American Industries and prevent the significant economic disruptions we have seen in the past. It is important to note that i firmly believe that addressing these imbalances in an appropriate way will not only be good for the u. S. And the world, it will also be good for chinas longterm productivity and growth. Importantly, we have and will continue to emphasize that our concern about overcapacity is not an advocated by antichina sentiment or a desire to decouple, rather it is driven by a desire to prevent local economic dislocation and move to a healthier economic relationship with china. Second, i was pleased to announce we are expanding cooperation with china in our shared work against illicit finance. At home, President Biden and i have taken major steps to prevent illicit actors from exploiting the u. S. Financial system and to hold them accountable when they do. But the United States cannot do it alone. Weakness is in financial regulatory regimes abroad, in china and other countries around the world, also provide an avenue for financing for criminal organizations, human traffickers, drug traffickers, fraudsters, and other malicious actors that can harm america and our National Security. From now on, a new joint treasury pb oc cooperation and exchange on antiMoney Laundering established during this trip will enable our countries to share best crack this is an information to clamp down on loopholes in our respective financial systems. I have asked my team to begin these meetings very soon and we look forward to reporting on our progress. Im also pleased that illicit finance is a critical component of treasuries work with the pb oc as part of the u. S. Prc counter narcotics working group. Exchanging information on Money Laundering as it relates to trafficking of fentanyl and other illicit synthetic drugs can help us disrupt the flow of illicit narcotics, precursor chemicals, and equipment. The opioid at the adamic is a crisis that affects every community in the United States, large or small. With more than 150 americans dying each day. Treasury is committed to using all of our tolls tools to counter this threat. Third, we are announcing we will continue a series of financial Technical Exchanges between the United States and china. Just like military leaders need a hotline in crisis, american and chinese financial regulators must be able to communicate to prevent financial stresses from turning into crises with tremendous ramifications for our citizens in the international community. Over the past few months, we have hosted several exercises with china, including on how we would coordinate if there were to be a failure of a large bank in either of our countries. Im pleased that we will hold upcoming exchanges on operational resilience in the Financial Sector and on Financial Stability implications from the insurance sectors exposure to climate risks. These are the types of discussions we have with other major economies. Since we know a financial issue in a foreign country can quickly cascade two hours and im glad we are doing the same with china. This Technical Exchange builds on other spheres of cooperation. This includes our efforts to alleviate that distress and emerging markets and developing countries. We have seen progress over the past few months on specific debt cases such as zambias. I have and will continue to push as hard as i can to build greater momentum in other outstanding debt cases. I have also been pleased by the progress we have made in conversations around Sustainable Finance and im committed to moving our climate cooperation with china forward. Alongside these specific steps, i also exchanged views on the macroeconomy and National Security. I shared my assessment that the American Economy remains strong with President Bidens historic economic agenda driving both our current resilience and longterm growth. We also discussed risks to the resilient global outlook. I was able to learn more about how the Chinese Government views their current economic and financial situation and the steps that they have and are contemplating taking. These steps inform our own economic decisionmaking. We also had Difficult Conversations about National Security. President biden and i are determined to do all we can to stem the flow of materials for russias Industrial Base we continue to be concerned about the role that any firms including those in the prc are playing and russias military procurement. I stress the Companies Including those in the prc must not provide Material Support for russias war and that they will face significant consequences if they do. And i reinforce that any banks that facilitate significant transactions to channel military or dual use goods to russias defense Industrial Base expose themselves to the risk of u. S. Sanctions. We also exchanged information on the use of economic tools in the National Security space. Going forward, i believe we must continue to discuss how each side defines National Security in the economic sphere. With the u. S. Needs to continually evaluate its National Security measures given the rapid pace of technological development, we are committed to know surprises. We are privately and publicly laying out our perspective at length alongside the principles and processes which we undertake in formulating our policies. Our actions are implemented through transparent rules and regulations with ample comment periods. We would welcome transparency from the prc on its National Security actions and greater clarity on where it sees the line between National Security and economic issues. This would provide greater stability to the relationship while also helping foster confidence for firms doing business with the prc, which is in chinas interest. The vice premier and i committed to stay in close touch about these issues. The United States will also be hosting our chinese counterparts next week for the fourth meetings of the economic and financial working groups where these issues will be discussed at length. Let me end with this, the work of diplomacy is not easy, but in the few months since the woodside summit and certainly since i visited beijing last summer, we have taken major steps to stabilize the u. S. China bilateral relationship. During this trip, we have been able to build on that foundation to move the ball forward on specific issues that matter to americans. This does not mean we have resolved all of our differences. There is much more work to do. And it remains unclear what this relationship will endure in the months and years ahead. It as we proceed, we must remember that its trajectory is not predetermined. It depends on the choices each of our countrys make. The American People expect a clear read approach to china, one that precedes with confidence about the economic strength of our country and protects our National Security, while finding a way forward so that both countries can live in a world of peace and prosperity. The president and i are firmly committed to continue to deliver on that. Thank you. I would be glad to take your questions. First question goes to Alan Rappaport of the new york times. Thank you, secretary ellen. Following your meeting with the premier, his office put out a statement saying the u. S. Should refrain from politicizing and national securitizing economics and trade and appeared to be dismissive of some of the concerns you raised about overcapacity. What is your response to that . If china does not make changes, what measures do you think should be considered to protect the Green Energy Industries that the Biden Administration trying to develop . I believe that in several areas of conversation on this topic that i was able to make very clear the basis for our concerns about chinese overcapacity. And that our concerns are not u. S. Concerns alone, but also reflect the views of our allies in europe and japan and in developing emerging markets, mexico, india, among others. So this is a widespread set of concern. And i believe he heard very clearly my view that this is something that if not addressed will injure American Workers and firms. And i think he also understands that we have concerns with respect to our supply Chain Resilience about developingresig overdependence on china as a source of supply in areas like clean energy, which will clearly be expanding, and we need to have some participation in this, as our allies do. So we agreed, as i mentioned, to launch intensive exchanges, unbalanced growth in domestic and global economies. The chinese have heard our concerns on control impacts on American Workers and firms and realize that we need to discuss this and address it collaboratively. The next question goes to fatima from the associated press. Hi, secretary yellen. Excuse my voice. Your counterparts brought up tiktok. Is it practical to ban the output in the u. S. . Incapacity, what is it looking for china to do in ng and solar . Are you looking for volunteers on exports . Sec. Yellen let me start with tiktok. We discussed it briefly. You know, the president has made it clear that a bill in the house, and i am certainly supportive of efforts by our administration to address National Security issues in relation to sensitive, personal data, so our concerns here have to do with sensitive, personal data and protecting it. This is a legitimate concern. It is a concern that china, for its part, also is concerned about many u. S. Social caps are not allowed to operate in china. We would like to find a way forward. Of course, this is important for the chinese, you know, the president made clear he would sign the house legislation. Sorry, there was a second . Fatima on solar capacity, will we be looking for voluntary export restrictions . Sec. Yellen well, i dont have anything specific to say here. This is a problem that has developed over many years. I think, importantly, it reflects chinese policies that place great priority on these sectors, channels, supports, and we want them to continue operating, even when prices drop to very low levels due to overcapacity. If those firms dont exist, the market instead, it is potentially our firms that have to do so. I think some changes in policy, as i mentioned, on the chinese side, are necessary and appropriate, and these are matters that we will begin discussing as early as next week , when the Economic Working Group convenes again. The next question will go to Courtney Brown with axios. Courtney thanks for taking our question, secretary yellen. I want to follow up with what callan asked. You mentioned in your opening remarks about the Biden Administration will not accept the reality of what happened over a decade ago with the first china shock. How far is the Biden Administration willing to go to prevent that from becoming a reality . What are some of these specific actions that you could take . Sec. Yellen well, i dont want to get into where we are on this, but i did, last week, visit a firm in atlanta that was a dynamic and technologically advanced producer of solar cells in the early 2000s. This was a time when china ramped up its capacity to produce solar panels enormously. Prices plummeted, and in 2017, the firm finally have losses that were so steep, it went out of business. It went bankrupt. And one of the goals of the infla