US has economic edge over China, says former official

The United States still holds a strong position in its economic relationship with China, according to Kurt Campbell, former U.S. Deputy Secretary of State. In a recent interview on Bloomberg’s Insight with Haslinda Amin, Campbell explained that while the U.S. relies on China for key resources like rare earths and other supply chain components, it will take a long time—possibly a generation—to reduce this dependency.

However, he emphasized that this does not mean China has the upper hand. Campbell pointed out that both countries have the power to impact each other’s economies. “China could cause serious harm to U.S. manufacturing and tech industries,” he said, “but the U.S. can also take steps that would significantly affect China’s economy.”

He highlighted recent efforts by Treasury Secretary Bessant to stabilize relations through talks with Chinese officials, which have shown some progress. For example, restrictions on Chinese students in the U.S. have been partially lifted, easing tensions. The discussion also touched on broader global challenges, including technology and trade issues.

Campbell noted that while China’s advancements are notable, the U.S. remains competitive and capable of protecting its economic interests. The interview, part of Bloomberg’s technology-focused program broadcast from San Francisco, underscored the complex but balanced economic dynamic between the two nations, with neither holding complete control.