US Secretary of State Marco Rubio on Tuesday, 2 June, warned that the United States cannot afford to cede its technological edge to China, telling lawmakers in Washington that sustaining American leadership in artificial intelligence has become a critical national security priority. Testifying before the Senate Foreign Relations Committee, Rubio cautioned that while Washington currently leads globally on AI, the advantage is 'not irreversible'.

Key Remarks at the Senate Hearing

Rubio framed the US-China relationship as one of enduring strategic competition, even as diplomatic channels stay open. 'China and the United States are the two largest economies in the world, the two most powerful militaries in the world,' he said. 'The Chinese government and the U.S. government have to speak.'

He added that frictions would persist across multiple fronts. 'There are areas of our relationship in which we are going to have struggles not just for years, but perhaps for decades,' Rubio told the panel.

Supply Chain Dependence Flagged as Strategic Risk

The Secretary said reducing reliance on Chinese supply chains had become a central plank of US policy, singling out critical minerals, pharmaceuticals, and advanced technologies as vulnerable sectors. 'The United States, and I would argue the world, cannot depend on one country for 90 per cent of anything, especially 90 per cent of things that are critical to our economies,' he said.

'We just can't live in a world in which we rely on anybody for 90 per cent of what we get in one sole source that could be cut off at any time as leverage against us or punishment, or in a time of conflict,' Rubio added.

AI Race and the 'Pax Silica' Initiative

The exchange sharpened when Senator Pete Ricketts argued that Beijing is aggressively pursuing dominance in AI and advanced semiconductor manufacturing, warning that a Chinese lead would harm both Washington and its allies. Rubio agreed and pointed to a State Department initiative dubbed 'Pax Silica', designed to align countries across the AI supply chain — from critical minerals to advanced chips.

'I think it is safe to say the United States right now is a global leader on AI,' Rubio said. 'I think it is also wise to say that the lead is not irreversible.'

Warning on Labour Market Disruption

Rubio also flagged broader societal risks from AI adoption, cautioning that the technology could reshape labour markets and squeeze white-collar workers worldwide. 'There will be white-collar jobs in this country that will be impacted,' he said, adding that the fallout was 'a political issue that, over time, could destabilise societies all over the world'.

Why It Matters

The testimony came during a hearing on President Donald Trump's proposed State Department budget, where lawmakers from both parties pressed on China's expanding technological footprint. The Trump administration has increasingly cast the China challenge as a multi-decade contest spanning trade, technology, defence, and supply chains. Notably, the 'Pax Silica' framing suggests a coalition-building approach reminiscent of past US-led technology blocs, though specifics on partner countries and timelines remain undisclosed.

What happens next will hinge on whether Washington can convert rhetorical alignment with allies into hard commitments on chip fabrication, critical mineral processing, and AI governance — areas where China currently holds significant structural leverage.