Treasury Secretary Yellen On Potential For Sanctions On China: 'We Don't See That Happening'

U.S. Treasury Secretary Janet Yellen said on CNBC’s "Squawk Box" Friday that she does not believe it will be necessary to place sanctions on China unless it assists Russia.

Andrew Sorkin said on the show that, “I’m thinking about big companies like Apple that are doing business there [in China]. Clearly, China appears to be an ally of Russia [and] may have to rethink where they’re doing business.”

China has clarified that it wants peace between Russia and Ukraine and has communicated that point repeatedly. However, the Kremlin did say that it would accept crypto payments for oil and gas from “friendly” countries like China and Turkey.

Russia also previously asked China for military and economic assistance, according to the U.S., which both countries deny ever happened. China has not fully denounced Russia’s actions in Ukraine.

“Would you consider sanctions on China as an ally of Russia at this point?” he asked Yellen.

“I don’t think that that’s necessary or appropriate at this point. We as senior administration officials are talking privately and quietly with China to make sure that they understand our position,” Yellen said.

These remarks come as President Joe Biden is in Europe meeting with European leaders and policymakers to coordinate efforts against Russia for its invasion and continued war against Ukraine.

“We would be very concerned if they were to supply weapons to Russia, or to try to evade the sanctions that we’ve put in place on the Russian financial system and the central bank,” Yellen said.

The administration has made it very clear to China that if it helps the Kremlin in any way that it would face severe consequences. Though these consequences have not been clearly laid out to the public, they would likely include more sanctions.

“We don’t see that happening at this point. And it’s really up to China to make sure that they understand this complex situation that they face,” Yellen added.