Former US Treasury Secretary Henry Paulson has cautioned against allowing strategic competition between the United States and China to escalate into a wider conflict. Paulson argues that growing distrust between the two nations currently presents a more significant danger than trade imbalances. He emphasized the critical importance of managing the relationship, which he described as the world’s most consequential, given increasing rivalry in areas like trade, technology, and security. His warning comes amid concerns about economic “decoupling” – reducing interdependence – between the two powers. Paulson stressed the need for careful stewardship to prevent further deterioration. He implied that a focus on managing the relationship is paramount to global stability. The former Secretary’s comments highlight the urgency of navigating the complex US-China dynamic.