Dear Focus Reader,

After a turbulent year in China-U.S. relations, 2023 seems to be culminating on a more positive note. Presidents Joe Biden and Xi Jinping had their long-awaited in-person meeting on the sidelines of the APEC Summit in San Francisco last month, following a series of high-level dialogues. And this week, top military officers from both nations ended the freeze on contact, holding a virtual teleconference, after Xi and Biden promised to resume military-to-military ties during their discussions.

The video meeting was the first such since military relations were severed by Beijing after then-House of Representatives Speaker Nancy Pelosi visited Taiwan in August 2022.

The two military officials discussed "the importance of working together to responsibly manage competition, avoid miscalculations, and maintain open and direct lines of communication," and touched on "a number of global and regional security issues."

On Thursday, U.S. Treasury Secretary Janet Yellen also delineated the administration's strategy for navigating relations with China in the upcoming presidential election year, placing emphasis on minimizing misunderstandings that could inflame tensions.

"Continuing to stabilize our relationship to prevent escalation won't make news," Yellen said. "But our economies, our people…and people around the world will be safer and more secure."

Our team will be off next week, but we'll be back the first week of January to keep you updated on all things China-U.S. relations. For now, check out our latest Focus content, including topics on business in China, the U.S. economy, and China-U.S. cooperation on AI.

We wish everyone a safe and warm holiday season!