Treasury Secretary Janet Yellen wrote in a letter earlier this week that the U.S. could default on its debt as soon as June 1. A default would certainly wreak havoc on the financial markets, and Commerce Secretary Gina Raimondo tells Yahoo Finance she's already hearing some early apprehension from executives.

"When I talk to U.S. CEOs, there's already a lot of anxiety about the debt ceiling."

But Raimondo adds that the executives she's spoken with have a message for lawmakers. "[The CEOs] have a view that it's not time to play politics - it's time to do the right thing. Every business pays their bills."

President Biden has invited leaders of both parties for a meeting next week to find a solution. "The last thing the markets need and the economy needs right now is that kind of disruption," Raimondo says.

Listen to Seana Smith's entire interview with Commerce Secretary Raimondo here.

KEY VIDEO MOMENTS:

0:45 Raimondo says U.S. CEO's feel a lot of anxiety about the debt ceiling

0:47 Raimondo says Chinese businesses know the U.S. is the best place to do business

Video Transcript

- And Secretary, when it comes to some of the issues facing the economy today, we have certainly seen increased turmoil within the banking sector this week, also concerns rising about the standoff surrounding the debt ceiling. What are some of those implications for businesses and what business leaders need to keep in mind at a time like this?

GINA RAIMONDO: Yes. Here at this conference, which is, you know, non-US companies looking to make investments in the US, I haven't heard that. What I have heard is the Inflation Reduction Act is amazing. And we want to bring our battery facility to the United States. We want to make new electric vehicles in the United States, et cetera.

I will say, though, when I talk to US CEOs, there's a lot of anxiety about the debt ceiling and a view that it's not time to play politics. It's time to do the right thing. Every business pays their bills. You know, this is to pay bills we've already incurred. And so I do hear a lot of anxiety that Congress needs to do its job because the last thing that markets need and the economy needs is that kind of a disruption right now.

- And Secretary, another issue that certainly has Congress's attention is the rising tension here between the US and China. I'm sure that that is something that has come up at the summit this week. What's your message to executives, to investors who are navigating this rift here between the US and China?

GINA RAIMONDO: You know, it's interesting. We have a very large delegation here from China-- almost 100 companies as compared to, say, 40 companies just a couple of years ago. So these Chinese businesses realize what we know, which is America is the best place to do business, the best place to start a business. And we welcome that.

What we don't want to do is allow our cutting edge technology and critical technology where we're ahead of China. We can't allow that to be sold to China and used in China's military. And so we're going to protect that, and ferociously.

But the truth of it is, you know, they're still one of our biggest trading partners. We still need to trade and do it in a way that creates jobs for Americans, but, of course, never interferes with our national security.