Yellen said in April that her trip to China had been long anticipated but held off until the "appropriate time."
A US report, citing anonymous sources, said on Monday that the trip was being planned amid a Biden administration executive order that would regulate and potentially cut off certain US investments in China.
The executive order is reportedly nearing completion and officials are aiming to have it ready as soon as late July.
The Biden team has been at work for almost two years on the order regarding US outbound investment in China, which would cover certain investments in semiconductors, artificial intelligence and quantum computing.
Yellen seeks to meet her counterpart - Vice Premier for Economic Policy He Lifeng, who assumed this position in March.