U.S. Defense Secretary Pete Hegseth urged NATO to take greater responsibility for European security as the U.S. shifts focus to deterring China. The Trump administration’s reassessment of global deployments could foreshadow a strategic pivot, but uncertainties remain over China’s military trajectory and the effectiveness of U.S. policy responses.

Simon Lacey, Head of Digital Trade and Geopolitics at the World Economic Forum, in a recent interview with Marc Smrikarov of China-US Focus, discusses areas where U.S. and Chinese interests align, such as global financial stability and freedom of navigation. Additionally, he emphasizes the need for patience and understanding on both sides, and to recognize the importance of cooperation in a shifting multipolar world. He also highlights the fragmentation of AI development between the U.S. and China, warning that the lack of cross-collaboration could hinder innovation, and urges a more rational approach to labeling AI and semiconductors as dual-use technologies in national security contexts.

U.S. allies in the long run are expected to pursue greater strategic autonomy, which means defining their national interests outside of American influence. Their policies toward China are therefore likely to continue evolving in a pragmatic and nuanced direction.

The grand strategies of Sun Tzu and Thucydides converge on a central idea: true victory lies in avoiding direct confrontation. In an era of nuclear deterrence and global challenges, their wisdom underscores that great powers must prioritize strategic restraint, internal resilience, and measured competition over reckless escalation.

Given the deadly and complex nature of the U.S. fentanyl crisis, overcoming challenges and making the best of cooperation have become daunting tasks. The United States needs to act to stem domestic demand instead of accusing China of complicity.

Despite their differences, both China and the United States benefit from constructive connections and suffer from continued antagonism. The next few years will determine whether relations will develop into a new cold war or move toward a more equitable form of coexistence.

Secretary of State Marco Rubio recently stated that multipolarity is not only the preference, but the norm in the Trump administration—a dramatic shift in U.S. foreign policy. But unlike China’s globally engaged model, Rubio’s approach prioritizes U.S. interests, reflecting a more transactional and less globally engaged stance.

To slow China’s economic and tech development, the new American administration may employ a combination tariffs, export controls and restrictions on Chinese access to international markets. It is also likely to continue its crackdown on Chinese tech companies.

The country is far more resilient today than it was four years ago and in a good position to counter Donald Trump’s promised tariffs — or unexpected moves yet to come. It has diversified markets for Chinese goods, reduced the chances that countries in the region will form anti-China alliances and is welcoming foreign investment.

A second Trump presidency could disrupt Asia with aggressive tariffs, stricter immigration policies, and heightened geopolitical tensions. While some leaders express cautious optimism, the region faces mounting pressure to align with U.S. interests amid fears of economic fallout, strained alliances, and potential conflicts in key areas like the South China Sea and Taiwan Strait.