Dear Focus Reader,

This week, the U.S. intelligence community released its annual Worldwide Threat Assessment, singling out China as the "most formidable challenge" to American security. The assessment highlights Beijing's role in the global illicit trade of fentanyl, citing involvement in supplying precursor chemicals to cartels responsible for the opioid crisis in the United States. The Trump administration has recently ramped up tariffs on China to address these concerns, which has only added tension to an already fraught relationship.

China's foreign ministry dismissed the report as biased and irresponsible, accusing it of further stoking the "China threat" narrative. Beijing has also expressed concerns over the growing trend of politicizing trade issues and weaponizing economic measures against it.

Meanwhile, Chinese President Xi Jinping recently hosted a high-profile meeting with global business leaders in Beijing, where he urged multinational companies to resist the forces of unilateralism and protectionism. Xi called on foreign firms to uphold global order and play an active role in promoting open, stable economic relations.

Xi's message to the international business community came amidst a broader charm offensive aimed at boosting foreign investment in China. He emphasized that China remains a fertile ground for investment and is committed to reform and further opening up its economy. During the meeting, which included CEOs from major global companies like FedEx, Pfizer, and Mercedes-Benz, Xi reaffirmed China's determination to provide fair competition and market access for foreign businesses. He also reiterated his stance that economic frictions, such as those between the U.S. and China, should be resolved through dialogue, rather than through unilateral actions that disrupt global supply chains.

As trade tensions and national security concerns continue to shape U.S.-China relations, the challenge of finding a path that balances competition with cooperation on issues of mutual concern remains.

Learn more on China-U.S. relations by catching up on our latest Focus content, including topics discussing scientific cooperation, soft power, and the implications of Trump 2.0.