Why has the United States (US) changed its stance toward China and kept it in the digital economy domain, despite the change in its government? The extant literature finds causes from China yet barely addresses perceptual factors. This study, however, argues that the strategy and policy of the US have undergone a process whereby the US has securitized the domain by designating China as a threat instead of a risk. Furthermore, the US has internationalized securitization to include its allies and close partners among the Indo-Pacific countries. Analytical narratives examine the US’ economic statecraft, including commercial, industrial, and investment policies. A close examination reveals that the US-China technology competition has been undergoing partial decoupling in global supply chains of critical technologies.