Sec. Yellen: We Are Evaluating The Implications From The Chevron Decision On The Treasury Dept.

2 months ago

On Tuesday, Rep. Ritchie Torres (D-NY) questioned Treasury Secretary Janet Yellen on the recent Supreme Court decision on the Chevron case during a House Financial Services Committee hearing.

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00:00or other firms can provide these solar panels and bid on those contracts,

00:05then certainly there would be less use of Chinese products in those projects.

00:10Well, we would certainly hope that U.S. companies would be chosen

00:14over Chinese companies when it comes to solar panels.

00:17Thank you very much.

00:18I yield back.

00:19Gentlelady's time has expired.

00:20With that, we go to the gentleman from New York, Mr. Torres.

00:25Thank you, Madam Secretary.

00:28What impact on Treasury rulemaking do you expect from the loss of Chevron deference?

00:34Do you expect the impact to be disruptive, minimal?

00:36Is it too early to tell?

00:38Well, I am concerned about the Chevron decision.

00:42As the White House has indicated, it limits the use of agency expertise in designing rules

00:56or deferring to rules that we put in place subject to congressional legislation.

01:05But we intend to go on with rulemaking efforts and protect the American people

01:14through those rulemakings, and we're evaluating,

01:19our legal team is evaluating whether or not there are specific implications.

01:26I'm not aware of anything specific so far.

01:28I have a question about the semiconductor arms race with China.

01:33According to a report by the Boston Consulting Group

01:36and the Semiconductor Industry Association, by 2032, the United States will account

01:42for 30% of advanced semiconductor production, compared to only 2% for China.

01:47Do you believe, as I do, that these projections demonstrate the success of the Biden strategy,

01:53the combination of chips investment in America and the export controls on China?

01:59I do, yes.

02:00I would agree with that.

02:02And Madam Secretary, you've been sounding the alarm about China's overcapacity.

02:07Yes. Of legacy chipmaking.

02:09According to the same report, by 2032, China will account for one-fifth of chips in the range

02:15of 10 to 22 nanometers and one-third of chips above 28 nanometers.

02:21What actions should the United States take to combat China's overcapacity

02:25of legacy chipmaking, and when should we take those actions?

02:29Well, the recent actions did, of putting tariffs in place, did include some legacy chips.

02:39And, of course, the Semiconductor and Chips Act is designed to promote additional production

02:46in the United States to secure our supply chains and to gain the dynamic benefits that come

02:53from producing and learning in the process of production, developing new technologies.

03:03On a separate topic, the Financial Times has reported

03:06that Chinese organized crime operates a network of underground banks that launders money

03:11for both Mexican cartels who are trafficking in fentanyl

03:15and Chinese nationals whose capital is fleeing China.

03:18Chinese money laundering is essentially financing the deadliest drug crisis

03:23in American history, a crisis whose latest death toll surpasses 100,000 Americans.

03:29What role is the Treasury Department playing in policing the illicit finance at the heart

03:34of America's deadliest drug crisis?

03:36So, I certainly agree that it is a national tragedy what's happened with drugs,

03:43particularly fentanyl and other synthetic opioids.

03:47And Treasury is using every tool at its disposal to try to crack down and reduce the flow

03:56of illicit drugs into the United States.

04:00That includes by direct sanctions that we put on firms in China and elsewhere

04:07that are providing precursors.

04:10We have an agreement to work collaboratively with China to reduce the activities

04:18of Chinese firms in supplying precursors to Mexico.

04:23We're working collaboratively with Mexico.

04:26We've announced many new sanctions actions cracking down.

04:31I just do, I do worry that the CCP is stringing us along.

04:36You know, 97% of the fentanyl precursors are manufactured in China.

04:41You know, Xi Jinping has the power to unilaterally shut down the supply chains that account

04:47for almost all of those fentanyl precursors.

04:49At what point does the United States impose sanctions on China

04:54for perpetuating the deadliest drug crisis in American history?

04:58We have seen China take some positive steps in recent months, and we'll try to build on that,

05:06but I wouldn't rule out anything in the future.

05:10Thank you, Madam Secretary.

05:14Gentleman, you'll speak.

Sec. Yellen: We Are Evaluating The Implications From The Chevron Decision On The Treasury Dept.

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