Janet Yellen addresses overcapacity issues on trip to China

Beginning the first leg of her trip to China, US Secretary of the Treasury Janet Yellen is meeting with Chinese officials to strengthen the United States' economic relationship with the nation while also addressing manufacturing overcapacity concerns.

Yahoo Finance Reporter Jennifer Schonberger breaks down the latest news out of Yellen's meeting with China's economic officials.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

SEANA SMITH: Janet Yellen, kicking off her first full day of official meetings in China. Now, Yellen calling on China's government to address manufacturing overcapacity and also create a level playing field for American companies.

Yahoo Finance's Jennifer Schonberger has the highlights joining us from outside the Labor Department, here this morning, Jennifer.

JENNIFER SCHONBERGER: Good morning, Seana. That's exactly right. US Treasury Secretary, Janet Yellen kicking off her second trip to China as Secretary, where she is warning about the overcapacity and production of certain goods and sectors, including electric vehicles and solar panels warning that could undercut US businesses and US jobs.

She says that she sees emerging new risks in U-- in certain sectors in China as it relates to certain goods production. Asked by reporters whether she would consider trade barriers to China if officials do not heed her warnings.

She says that hasn't been planned, but it's certainly under consideration. Yellen is today in the province of Guangdong, that's the country's economic powerhouse. This ahead of heading to Beijing next week where she will meet with her counterpart, Vice Premier, Hu.

Ahead of that, she warned Hu that the US and China need to create a level playing field. Now senior administration officials tell reporters that they do not expect any deliverables from this trip. Though they say the relationship between the US and China has improved markedly. Guys.

BRAD SMITH: All right. Thanks so much, Jen. We should mention you're also going to be speaking to Labor Secretary Julie Su later this hour.

JENNIFER SCHONBERGER: That's right.

BRAD SMITH: Do not want to miss that acting Secretary of Labor Julie Su joining our own Jennifer Schonberger, 9:45 AM.