CNN reports: "Everything seemed to be going so well between China and the US. After a successful visit by US President Donald Trump to Beijing earlier this year, relations with Chinese leader Xi Jinping appeared to be at an all time high, with both lauding each others' achievements and Trump saying he didn't blame China for 'taking advantage' of previous US administrations. But Chinese hopes this could represent a major shift in relations were dashed Monday when Trump labeled the country a 'rival power' seeking to 'challenge American influence, values and wealth.' A new document outlining his presidency's National Security Strategy (NSS) went even further, describing both China and Russia as 'revisionist powers' who want 'to shape a world antithetical to US values and interests.' Speaking Tuesday, Chinese foreign ministry spokeswoman Hua Chunying urged the US to 'abandon its Cold War mentality and zero-sum game concept,' warning failure to do so 'would only harm itself as well as others. China will resolutely safeguard its sovereignty, security and right to develop,' she said. 'No one should have the fantasy of expecting China to swallow the bitter fruit of harming its own interests.' Zhang Baohui, a professor of political science at Lingnan University in Hong Kong, said the document showed the partnership between Trump and Xi, which Beijing had been trying to cultivate, 'is dead.'"
CNBC reports: "Western countries are growing increasingly cautious of China's Communist Party. Officials in the U.S., Australia, New Zealand and Germany — major recipients of Chinese foreign direct investment — have been questioning the extent of Beijing's interference on their home turfs amid recent developments that suggest rising Chinese clout. Last Wednesday, the U.S. Congressional-Executive Commission on China (CECC) held a hearing on Beijing's influence-wielding attempts states-side. That same week, China summoned Australia's ambassador after Prime Minister Malcolm Turnbull cited 'disturbing reports about Chinese influence.' Meanwhile, security experts in New Zealand warned Prime Minister Jacinda Ardern about Chinese attempts to access sensitive public and private sector information, according to a Financial Times report last week. And in Germany, intelligence officials recently revealed how Chinese spies used LinkedIn to snoop on politicians, according to Reuters. Experts widely believe that Beijing is using education, spying, political donations and people-to-people diplomacy to gain a greater say in local decision-making in these countries. And at a time when Beijing is dominating the global trade conversation, the issue threatens to strain bilateral relations between China and Western economies. China has vehemently rejected all claims of political interference, referring to them as 'symptoms of McCarthyism' in a recent Global Times editorial."
Financial Times comments: "Donald Trump has revealed a national security strategy with a heavy emphasis on what his administration portrays as an existential economic competition with China. In a launch speech on Monday the US president made clear he had only one outcome in mind. 'We are declaring that America is in the game and America is going to win,' he said... The new strategy looks like the recipe for a potentially damaging trade war between the world's two largest economies, rather than a game. Yet also in there are messages meant to assuage concerns of those who fear Mr Trump is out to blow up the international order. For most of the past year the Trump administration has been promising more tough action on trade than it has been able to deliver as the president's campaign promises have quickly confronted real world complexities and consequences. But that may be about to change. One of the key promises the new document makes is to deliver tougher enforcement of trade violations by economic rivals such as China, which amounts to code for applying punitive tariffs. In the pipeline and facing deadlines in the coming weeks are a half dozen different ways in which the Trump administration could apply new tariffs on goods from China and other rivals. Trade experts in Washington believe the conclusion of an investigation into China's intellectual property theft and forced technology transfer policies is near."