STORY: China exporting its way to full employment is not acceptable to the rest of the world, Yellen said in a Reuters Next interview in Washington.
She added that Chinese officials acknowledge a problem with industrial overcapacity, but they need to address it.
Yellen said the issue, which threatens producers of similar goods in the U.S., Europe, Japan and emerging markets such as India and Mexico, was again "discussed intensively" with Chinese officials in Washington on the sidelines of the International Monetary Fund and World Bank spring meetings last week.
She added that the problem will not be resolved "in a day or a week."
