US President Joe Biden has called China a "ticking time bomb" in reference to the country's sluggish economic growth.

At a political fundraiser in the western state of Utah on Thursday, Biden pointed to China's underlying economic challenges, including a high unemployment rate.

He expressed concern over possible effects on Beijing's policymaking, saying "when bad folks have problems, they do bad things."

White House National Security Council spokesperson John Kirby said on Friday that Biden's remarks referred to China's internal tensions, which could affect the way the country interacts with the world.

Biden also reiterated that the United States wants competition, not confrontation, with China, saying he looks forward to a "rational relationship" with Beijing.

The US and China have agreed to continue dialogue as Washington aims to stabilize bilateral ties. But observers say Biden's comments may draw a sharp reaction from China.