On Monday, U.S. Treasury Undersecretary Jay Shambaugh stated that the United States is not seeking to decouple from China or limit its growth in any way.
Shambaugh emphasized that the Biden administration remains committed to maintaining open lines of communication with Beijing in order to prevent miscalculations that could lead to conflict.
Speaking at the Brookings Institution think tank, Shambaugh acknowledged that the United States would occasionally need to take targeted national security actions and would always stand up to unfair economic practices by China. However, he stressed that there was plenty of room for an economic relationship between the two countries that could benefit both parties.
Shambaugh's remarks come amidst ongoing tensions between the United States and China over a range of issues, including trade, human rights, and Taiwan. Some observers have speculated that the Biden administration may seek to "decouple" from China, severing economic ties in order to reduce the risk of conflict.
However, Shambaugh's comments suggest that the administration is taking a more nuanced approach. Rather than seeking to sever all economic ties with China, the United States is likely to focus on targeted actions designed to address specific concerns while preserving the broader economic relationship.
In recent years, the U.S.-China relationship has been marked by a series of disputes and tensions, including over trade, technology, and security. The Trump administration pursued a confrontational approach towards China, imposing tariffs on Chinese imports and seeking to limit China's access to U.S. technology.
The Biden administration has signaled a willingness to engage with China, but has also taken steps to address concerns about Chinese behavior. Earlier this year, the administration announced a review of U.S. policy towards China, and has taken steps to strengthen alliances and partnerships in the Indo-Pacific region.
Shambaugh's comments suggest that the administration is seeking to strike a balance between engaging with China and protecting U.S. interests. While the United States will continue to take targeted actions to address national security concerns and unfair economic practices, it is also seeking to preserve the broader economic relationship with China. Photo by Lawrence Jackson, White House photographer, Wikimedia commons.