FBI chief Chris Wray has endorsed the theory that Covid-19 originated in a Chinese laboratory, indicating an escalating bilateral relationship between the US and China.
The lab-leak theory suggests greater Chinese culpability and covering up of the role it played in the global health crisis.
The uncertainty within the administration comes at a time when there is bipartisan support in Congress for a more hawkish policy towards China.
The newly formulated House China committee expressed impatience with such delicacy towards China at its inaugural hearing on Tuesday evening.
Congress and more than half of US states have banned the Chinese-owned social media app TikTok on government devices.
China has sought to drive a wedge between Europe and the US, particularly on technology restrictions, but Beijing’s refusal to condemn Russia’s invasion of Ukraine has complicated those efforts.
China has presented a peace plan which it claims is based on “respecting the sovereignty of all countries”, but it calls for a ceasefire without necessarily requiring prior Russian withdrawal from occupied territory.
US officials have sought to temper the ratcheting up of tension in the relationship given its high stakes, but that is proving increasingly difficult.
Joe Biden has decided to stop short of imposing more drastic restrictions on US investment in China and will issue an executive order emphasising greater transparency from US investors rather than a blanket ban on the technology sector.
However, if China moved forward with its alleged plans to arm Russia directly, there would be a decisive shift in US sanctions policy.
