U.S. ready to sanction Chinese banks if they aid Russia's war machine, Yellen says

• The United States is prepared to sanction Chinese banks and companies, as well as Beijing's leadership, if they aid Russia's military in its invasion of Ukraine, U.S. Treasury Secretary Janet Yellen said Monday.
• The comments were part of a broader economic message that she has delivered to Chinese officials during her visit to the country over the past several days.
• The U.S. and China have been working to heal their relations even as the two superpowers manage ongoing economic tensions.

The United States is prepared to sanction Chinese banks and companies, as well as Beijing's leadership, if they assist Russia's armed forces with the invasion of Ukraine, U.S. Treasury Secretary Janet Yellen said Monday.

"We stand ready to act if we see significant violations, especially by financial institutions," Yellen said in an interview with CNBC's Sara Eisen in Beijing. "Anything that involves aiding Russia's military in their brutal war against Ukraine is unacceptable to us and we have the ability to sanction it."

President Joe Biden issued a new executive order in December that vested the Treasury secretary with the authority to sanction financial institutions that aided Russia's military-industrial complex.

Yellen said the Treasury Department has "not used this tool yet."

China is "entitled" to have a relationship with Russia, she said, noting that much of the trade between the two countries is seen by the U.S. as non-problematic. But the provision of military aid from Beijing to Moscow could trigger sanctions.

Yellen has been in China for several days already, meeting with officials including her counterpart, Vice Premier He Lifeng. The Treasury secretary arrived in the city of Guangzhou on Thursday and traveled to Beijing