Senator Mike Rounds (R-S.D.) recently argued against a complete decoupling of the US and Chinese economies, advocating instead for a strategy of “de-risking.” Speaking at the Reagan National Economic Forum on May 30th, Senator Rounds emphasized the deep interconnectedness of the two nations, making a clean break impossible.

“It’s not our job to divest or disassociate with China, but rather to de-risk our relationship with China,” he stated. The Senator highlighted the need for a more nuanced approach, acknowledging the intense competition between the US and China in crucial sectors like space, artificial intelligence, and other strategic areas.

Senator Rounds stressed the impossibility of complete decoupling, asserting, “You don’t decouple, you can’t decouple. We’re interconnected.” He proposed focusing on establishing a fairer trade agreement as a crucial first step in mitigating risks while maintaining economic ties.

This perspective offers a compelling counterpoint to calls for complete economic separation. Instead of advocating for a potentially disruptive and ultimately unrealistic decoupling, Senator Rounds’s approach focuses on pragmatic risk mitigation, a strategy that might prove more effective in navigating the complex dynamics of the US-China relationship in the long term.