The Biden admin is aware that decoupling is much more complicated than Trump made it out to be: you can't have a trade war when markets are as deeply integrated as the US's and China's.

China understands that the US fundamentally undermined its own position when it promoted financial capitalism in the US, trusting that Wall Street, using its control of capital, would always be able to direct the flow of capital in the US's favor. The fundamental issue is that capital has no homeland; it will go where it generates the highest return without any regard for nations and governments. The place where a lot of investment generates the best returns is no longer the US, but China. What does China have which the US doesn't? A large and growing middle class which is willing to buy products and services on a larger scale than the US's shrinking middle class. Americans who are not well off have now depended on federal government help just to make it through the pandemic. China has not had to do that.

Wall Street is loyal to capital, not the US, but to a large extent, Wall Street sets US government policy.

Big problem, because China does not do anything like that. In China, everything is under the tight control of the Party. Chinese expansionism under Xi is about having Chinese capital help expand the influence and power of the Party on a global scale. Any independence, such as Jack Ma showed, will not be tolerated and will be immediately struck down.

Moreover, the Republicans are resisting moves to raise minimum wages in the belief that will make American goods more expensive, when what they should be doing is putting more money in US middle class hands so that they can buy US goods and services. Trump and his Republican allies have been undercutting US consumers and helping China indirectly by weakening the US middle class. Biden knows this, which is why he has pushed for the $1.9T emergency rescue package. But that is just an emergency move.

Now, the US is suffering from a chip shortage; some auto manufacturers have cut back production because of it. Biden wants to shift production back to the US, but new chip fabs take about five years to build, which means that it will be 2026 before it is set up, by which time a new US administration will take charge, and by which time policy might change again.