During an interview in Rio de Janeiro, U.S. Treasury Secretary Janet Yellen expressed significant concerns about China's excessive industrial capacity.

Yellen emphasized that China's current economic model is unsustainable given the size of its economy.

She pointed out that this model relies heavily on investment in advanced manufacturing, which is problematic as it leads to an oversupply of cheap goods in global markets.

Despite international advice, China continues to invest heavily in this sector, ignoring recommendations from various countries and the International Monetary Fund aimed at reviving its economy through increased consumer spending.

Yellen criticized China for not heeding this advice, which could help stimulate its economy.

She urged for a unified message to be sent to China regarding the need for a change in its economic strategy.

Yellen emphasized a collective stance among countries that refuse to let their manufacturing sectors decline due to China's dominance in global production.

She noted that the issue of China's overinvestment in factories and the export of cheap goods affects not only G7 countries but also emerging markets, including Brazil, the host of the G20.

In response to these concerns, Brazil has raised tariffs on Chinese steel and electric vehicles.

Yellen highlighted that these concerns extend beyond G7 democracies to several emerging markets, underscoring the global impact of China's economic policies.

She stated that many countries are unwilling to let their manufacturing sectors suffer due to China's desire to dominate global manufacturing.