(Bloomberg) -- Treasury Secretary Janet Yellen reiterated that the US needs to reduce over-reliance on China in key supply chains as she touted major investments in US productive capacity in a pitch for Bidenomics Thursday.
“Key supply chains in areas like clean energy are overconcentrated in China, in part due to unfair non-market practices over decades,” Yellen said in remarks at a Livent Corp. lithium factory in North Carolina.
The Treasury chief also said that “overdependence, including on China, makes America more vulnerable to risks that disrupt our access to that foreign production, from natural disasters to macroeconomic forces, to deliberate actions such as economic coercion.”
Thanks to the Biden administration’s Inflation Reduction Act, investments in new energy sources, “America is seeing a renaissance in manufacturing,” Yellen said in the text of her speech released by the Treasury Department.
Yellen said that private-sector companies have announced some $614 billion in manufacturing and clean energy investments since President Joe Biden took office. That includes $142 billion for electric vehicles and batteries and $71 billion in clean energy manufacturing, she said.
In addition, Yellen touted recent strength in economic data, including figures this week showing gross domestic product grew at a 5.2% annualized pace in the third quarter.
Other reports out Thursday showed US consumer spending, inflation and the labor market all cooled in recent weeks. Federal Reserve officials have suggested they’re done raising interest rates, though they’re hesitant to declare victory on controlling inflation.
“Even as we don’t put too much weight on a single month or quarter’s numbers, a historically fast recovery is settling over time into sustainable growth,” Yellen said. “The president and I know there’s still more work to do. Higher prices can affect household budgets, and we’re using the tools we have to address this in essential areas like energy and health care.”
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