In an interview on CNN's Fareed Zakaria GPS, US Treasury Secretary Janet Yellen stated that the United States is determined to responsibly manage its trade relationship with China. Yellen expressed concerns about the possibility of surges in Chinese exports flooding the US market, particularly in areas where China has an overcapacity.

Yellen emphasized that the issue of Chinese manufacturing capacity is not only a concern for the US but also for other countries, including major economic players like Europe and Japan, as well as emerging markets such as India, Mexico, and Brazil. This flood of cheap goods into the market poses challenges for domestic manufacturers, making it crucial to address the issue efficiently.

To tackle this, Yellen mentioned that all options are being considered, including the potential implementation of additional tariffs. She stressed that the US has not ruled anything out when it comes to protecting American businesses and industries from unfair competition.

Furthermore, Yellen stood firm in defending President Biden's domestic manufacturing push. She highlighted the importance of revitalizing domestic production capabilities and safeguarding industries critical to national security and economic stability. Yellen believes that investing in domestic manufacturing not only supports job creation but also ensures the resilience and self-sufficiency of the US economy.

While Yellen acknowledged the need for collaboration with China on various global issues, she emphasized the importance of maintaining a level playing field for fair competition in trade relations. As the Treasury Secretary, Yellen aims to strike a balance between ensuring a productive partnership with China and safeguarding the interests of the United States and its trading partners.

As the world's two largest economies navigate their complex relationship, Yellen's approach signals a steadfast determination to address concerns over China's manufacturing capacity and promote a fair and balanced trade environment. The US Treasury Secretary's remarks highlight the Biden administration's commitment to protecting American businesses and workers while advocating for responsible management of global trade ties.