“[The United States and China] are the two largest emitters of carbon in the world,” said Nicholas Burns, former U.S. Ambassador to the People’s Republic of China. “We need to work with each other for the good of both of our countries.” During a MITEI Presents: Advancing the Energy Transition seminar, Ambassador Burns gave insight into the evolving state of U.S.-China relations, its implications for the global order, and its impact on global efforts to advance the energy transition and address climate change.

“We are the two largest global economies,” said Burns, who is now the Goodman Professor of the Practice of Diplomacy and International Relations at Harvard University’s Kennedy School of Government. “These are the only two countries that affect everybody else in the international system because of our weight.”

The relationship between the United States and China can be summarized in three words, according to Burns: competitive, tough, and adversarial—a description that rings true on both sides. He listed four primary areas for this competition: military, technology, trade and economics, and values.

Burns described the especially complicated area of trade and economics. “We both want to be number one. Neither of us—to be honest—is willing to be number two,” said Burns. Outside of North America, China is the United States’ largest trade partner. Outright trade wars—like those in April and October of 2025—create friction. “At one point, you’ll remember, 145% tariffs by the United States, and 125% by China on the United States. That just grinds a relationship. Those level of tariffs, had they been sustained, would have meant zero trade between the two countries.”

The energy field can be significantly impacted by this area of competition, Burns said. China is dominant in the production and processing of rare earth elements, many of which are critical to products like lithium batteries, solar panels, and electric vehicles. In 2024 and 2025, the United States was not the only country to place tariffs on these products; India, Turkey, South Africa, Mexico, Canada, the EU, and others followed suit. “I think the Trump administration is right, as President Biden was, to try to diversify sources on rare earths,” Burns said.

Burns also noted with interest the dichotomy in the Chinese energy sector between their lead on clean energy technology and their continual use of coal, standing out as an inconsistency in China’s efforts. Burns believes that climate change could be a key area of cooperation between China and the United States, emphasizing the importance of the United States’s participation, both technologically and diplomatically.

Burns also described the significant technological competition between the United States and China—an area of central importance. Throughout his presentation, Burns was quick to praise the emphasis that China puts on education and academic achievement, particularly in STEM fields. Pulling from a recent article in The Economist, he compared the 36% of Chinese first-year university students majoring in STEM fields to the 5% of American first-year students in STEM. “Think about the volume of graduates and the disparity between our country and China,” he said. “Then think about the percentage of those graduates who go into science and technology.”

Currently, areas like artificial intelligence, quantum computing, and biotechnology are taking center stage in technological innovation. “The Chinese are very skilled in terms of industrial processes and doctrine of adapting quickly,” said Burns. He explained that holding a competitive edge lies not only in who is first on the market, but who adopts the technology first and who is able to unite that technological progress with policy.

“This is the most important relationship that we have in the world,” said Burns. He believes that the true test is whether the United States and China can manage competition so that interests are protected, while avoiding the use of the massive destructive power both countries possess. “We’ve got to normalize the communication and engagement to prevent the worst from happening,” said Burns.

“We’re at a stage of human history where we’re all linked together, and the fate of everybody in this room and all of our countries is linked together by these huge transnational challenges,” said Burns. “We’ve got to learn to compete and yet live in peace with each other in the process.”

Georgina Campbell Flatter, CEO of Greentown Labs, will be the next speaker in the MITEI Presents: Advancing the Energy Transition series on March 17. This speaker series highlights energy experts and leaders at the forefront of the scientific, technological, and policy solutions needed to transform our energy systems. For more information on this and additional events, visit: energy.mit.edu/events.