US treasury secretary calls to diversify supply chains amid dependency on China 

U.S. Treasury Secretary Janet Yellen has expressed concerns about the United States' excessive reliance on China for vital supply chains, particularly in the clean energy sector, emphasizing the need to diversify sourcing.

Speaking at a Fortune CEO event in Washington, Yellen reiterated her belief that the United States should not sever its economic ties with China but rather explore alternative supply sources.

Yellen noted her prior reservations about endorsing industrial policy but pointed out that the United States had observed other countries building formidable semiconductor industries with substantial government support for too long.

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Highlighting the importance of a robust domestic semiconductor sector for national security, she emphasised the role of last year's Chips and Science Act in reversing the decline in this critical industry.

Yellen warned against the misconception that abandoning semiconductor manufacturing entirely would be a wise strategy for the United States.

"We're fooling ourselves if we think that abandoning, for all practical purposes, semiconductor manufacturing, is a smart strategy for the United States," Reuters quoted her as saying.

(With inputs from Reuters)

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