US-China Relations
2026-06-18.
[Briefing]
China has implemented stricter foreign investment screening mechanisms effective July 1, expanding its review of cross-border deals in what appears to be a defensive posture. Simultaneously, Taiwan's President Lai Ching-te is advocating for maintaining the regional status quo to protect critical semiconductor supply chains amid broader US-China strategic competition. These parallel moves reflect escalating tensions, with China tightening economic controls while Taiwan seeks stability to preserve its strategic technological role. The situation remains tense, with both sides taking protective measures that signal deepening economic and geopolitical rivalry.
[Key figures]
Verified May 30, 02:35 PMUS Military Contract for Unmanned Missile Systems
$70.6 million
Defense Forum Location
Singapore (Shangri-La Dialogue)
Countries Involved in Trade Discussions
2 (US and China)
[Situation map]
[Timeline]
China Implements Expanded Foreign Investment Restrictions Effective July 1
China is tightening its legal framework for scrutinizing cross-border deals through expanded restrictions on foreign investment and technology transfers, effective July 1. The move represents Beijing's escalating effort to protect sensitive industries and intellectual property from foreign acquisition, following increased US pressure on technology companies and signals a continuing escalation in US-China economic competition that will likely complicate bilateral trade relations and increase friction over critical sectors including artificial intelligence, semiconductors, and data infrastructure.
China Expands Foreign Investment Restrictions, Effective July 1
China has significantly expanded restrictions on foreign deals and technology transfers, establishing a legal framework to force the unwinding of completed overseas transactions, according to Channel News Asia. The move follows Beijing's blockade of the Meta-Manus deal and represents an escalation in Beijing's efforts to control foreign investment and protect domestic technological advancement.
US-China journalist expulsion escalates press freedom dispute
The United States has revoked the visa of a Chinese journalist in retaliation for China's expulsion of a New York Times correspondent, according to Frankfurter Allgemeine. The tit-for-tat measure marks a significant escalation in diplomatic tensions, with Washington criticizing Beijing's move as an attack on press freedom and characterizing the accusations against the American reporter as baseless.
US retaliates for China's expulsion of NY Times correspondent
The United States has revoked the visa of a Chinese journalist in retaliation for China's expulsion of a New York Times correspondent, according to Frankfurter Allgemeine. The US criticized China's move as an attack on press freedom, calling the accusations against the American reporter baseless. The tit-for-tat expulsion marks an escalation in diplomatic tensions between Washington and Beijing.
China claims J-10 fighters swept European Eurofighter 9-0
China's J-10CE fighter jets, used by Pakistan, reportedly achieved an undefeated record against Qatar's Eurofighter Typhoons in nine simulated air combat engagements during a 2024 joint exercise, according to Defense Blog citing China's state broadcaster CCTV. The claim underscores Beijing's military posturing amid heightened strategic competition with Washington over regional influence.
Taiwan opposition leader visits US, may meet Trump
Taiwan opposition leader Cheng Li-wun is visiting the United States for two weeks and has expressed interest in meeting President Donald Trump, according to DW Top Stories. The visit comes amid escalating US-China tensions over semiconductor export controls, and could involve discussions on Taiwan's stance regarding China relations.
Trump administration closes chip export loophole to China
The Trump administration has closed a loophole in semiconductor export controls to China, escalating technology restrictions as part of its broader effort to limit Beijing's access to advanced chips, according to Frankfurter Allgemeine. The move represents a significant tightening of US technology transfer policies and signals intensifying US-China competition in the critical semiconductor sector.
Asia-Pacific allies signal defense self-reliance amid US strategic shift
Philippine Defence Secretary Gilberto Teodoro publicly backed increased military spending among US allies at the Shangri-La Dialogue, signaling that the region is preparing for greater defense independence as the Trump administration prioritizes the Middle East. The statement reflects growing concerns in Asia-Pacific that reduced American engagement could create a strategic vacuum, prompting allies to strengthen their own capabilities to counter Chinese expansionism in the region.
Asia-Pacific concerns grow over US Middle East focus
The Asia-Pacific region is expressing concern that the Trump administration's focus on the Middle East could undermine US commitment to countering China, according to Le Figaro. Defense Secretary Pete Hegseth attempted to reassure the region about American security priorities amid the ongoing Middle East crisis.
Philippines Defence Chief Backs Increased Military Spending at Shangri-La Dialogue
The Philippine Defence Secretary has publicly endorsed calls for higher military spending among US allies, stating that allies must contribute their fair share to regional security. Channel News Asia reports he made these comments while defending recent military exercises with allies and attributed South China Sea tensions directly to China's expansionism, signaling a hardening stance during the regional security forum.
China conducts patrols near Scarborough Shoal after Philippine warning
China's military and coast guard conducted patrols near Scarborough Shoal in the South China Sea following Philippine Defense Secretary Teodoro's warning that Manila remains under threat from Beijing, reports the Bangkok Post. The move underscores ongoing territorial tensions despite a recent easing in broader US-China tensions.
Philippines criticizes China at Shangri-La over arbitral award
Philippine Defense Secretary Gilberto Teodoro Jr. presented concerns at the Shangri-La Dialogue in Singapore, criticizing China for refusing to recognize the 2016 Arbitral Award and raising allegations of espionage activities, according to Rappler. China's notably lower-level representation at the summit—military officers and scholars rather than senior defense officials—reflects shifting diplomatic dynamics in the region.
Trump Administration Establishes China Trade Board, Signals Tariff Relief
The Trump administration is creating a 'board of trade' with Chinese officials to manage commerce between the two countries, potentially providing tariff relief on non-sensitive goods worth $30 billion or more in annual exports from each nation, according to Politico Europe. The proposal, first introduced by U.S. Trade Representative Jamieson Greer in March, marks a significant shift from the administration's earlier hardline trade stance and suggests a willingness to de-escalate economic tensions with Beijing.
Trump administration proposes board to manage China trade talks
The Trump administration is establishing a new 'board of trade' to manage commerce with China, signaling a potential shift from its previous confrontational trade posture, Politico Europe reports. The initiative, first introduced by U.S. Trade Representative Jamieson Greer in March, could lead to tariff relief on approximately $30 billion in bilateral exports and would include both U.S. and Chinese officials focused on 'non-sensitive' goods.
U.S. Pursues Military Buildup While Softening China Rhetoric
The United States is simultaneously strengthening military deterrence in the Indo-Pacific while moderating its diplomatic posture toward Beijing, signaling a measured strategic shift. Defense Secretary Pete Hegseth warned of China's rapid military expansion at the Shangri-La Dialogue in Singapore but notably omitted Taiwan from his broader Asia policy speech, a significant departure from previous Pentagon statements, according to Politico Europe. The strategic contradiction is underscored by the U.S. Marine Corps awarding a $70.6 million contract to expand its unmanned anti-ship missile capabilities specifically designed to counter Chinese naval threats, Defense Blog reports.
U.S. Marines Expand Unmanned Anti-Ship Missile Capability
The U.S. Marine Corps awarded a $70.6 million contract to Oshkosh Defense for additional ROGUE-Fires unmanned missile-launching carriers, Defense Blog reports. The expansion is explicitly designed to enhance Pacific region capabilities to counter Chinese warship threats, representing a concrete step in strengthening U.S. military posture against Beijing's naval forces.
US Defense Secretary Omits Taiwan from Asia Policy Speech
Defense Secretary Pete Hegseth delivered a major policy address at the Shangri-La Dialogue in Singapore emphasizing a transactional approach to US-China relations while notably omitting any mention of Taiwan, according to Politico Europe. The significant departure from previous Pentagon statements comes weeks after the Trump administration paused a $14 billion arms sale to Taiwan, signaling a potential shift in U.S. strategic messaging on the island.
Taiwan Parliament Approves $11B US Arms Deal
Taiwan's parliament has approved an $11 billion arms package from the United States, marking a significant move to strengthen the island's defense capabilities, according to DW. The deal is expected to heighten US-China tensions, as Beijing views Taiwan as its own territory and has long opposed foreign military support for the island.
Major multinationals evacuate Gulf staff as Iran threatens economic targets
Major international firms including Citi, Deloitte, PwC, and HSBC have evacuated staff or closed offices across the Gulf region in response to Iranian threats against US- and Israel-linked economic targets, France 24 reports. The mass exodus signals unprecedented business disruption across Dubai, Saudi Arabia, Qatar, the UAE, and Kuwait amid escalating regional conflict.
Saudi Arabia requests military support from Belgium after Iranian missile strikes
Saudi Arabia has formally requested military assistance from Belgium following Iranian retaliatory missile attacks on the kingdom, according to Middle East Monitor. Belgian Defense Minister Theo Francken confirmed talks are underway to determine the scope of support, marking a significant escalation in regional conflict with direct European military involvement.
[Articles]
Trump Bites Off More Than He Can Chew with America's Strategic Opponents
The US is facing challenges in its foreign policy efforts, particularly with strategic opponents such as Russia, China, and Iran, as President Trump's ambitions are being met with resistance. The US is struggling to assert its influence on the global stage, with its opponents pushing back against its policies.
EU leaders back stronger trade defences amid Chinese export surge
EU leaders have agreed to strengthen trade defenses against a surge of Chinese exports, citing concerns over the EU's dependence on China and a growing goods trade deficit. The move aims to protect European industry while maintaining a constructive dialogue with Beijing. The EU's goods trade deficit with China reached approximately 360 billion euros last year.
EU Leaders Seek Response to China's Export Offensive
EU leaders are meeting in Brussels to discuss a response to China's export offensive, with all agreeing that the current relationship with China cannot continue as is, but disagreeing on the best approach. The meeting aims to find a unified EU stance on the issue. China's growing economic influence has sparked concerns among EU member states.
Conquest without War: China's Plan with Taiwan
China has been threatening Taiwan with a military invasion for years, but a new theory suggests that this may not be China's actual plan. The video explores the possibility of a non-military approach to reunification. China's intentions and actions towards Taiwan are being closely watched by the international community, particularly the US, which has a stake in the region's stability.
G7 Countries Attempt to Regulate AI Amidst China Competition
The G7 countries are attempting to find common ground on regulating artificial intelligence (AI) as they compete with China. During a working lunch at the G7 summit, leaders and tech executives, including those from Google Deepmind, OpenAI, and Anthropic, discussed cooperation in the AI sector and securing the technology. The meeting avoided directly addressing contentious issues, such as the suspension of two powerful AI models by the US administration, and instead focused on maintaining a unif
China unveils white paper on global governance, calls for stronger Global South representation
China has released a white paper on global governance, emphasizing the need for greater representation of the Global South. This move is seen as an attempt by Beijing to promote itself as a leader in multilateralism amidst increasing geopolitical tensions.
Europe’s budget battle begins as leaders spar over China challenge
European leaders are gathering to discuss how to address the economic challenge posed by China, as well as the EU's next seven-year budget. The meeting comes amid global pressures and rising populist sentiment within the EU, which is battling to secure its place in the world. The EU's governments are divided on the budget, with some countries pushing for a smaller budget and others seeking a larger one to protect traditional spending priorities.
[OPINION] Why a Chinese structure in Bajo de Masinloc is a sovereign red line
The Philippines has condemned China's installation of an unauthorized floating structure in the lagoon of Bajo de Masinloc, also known as Scarborough Shoal, citing concerns over territorial integrity and potential militarization. The structure, measuring 7x7 meters and equipped with specialized antennas, was reportedly removed after diplomatic pressure. However, the incident has raised alarm bells in Manila, which fears that China may be employing its 'creeping presence' strategy to expand its p
Commentary: Beijing’s crackdown on overseas investing is making Hong Kong more important, not less
Beijing's crackdown on overseas investing is increasing Hong Kong's importance as a controlled gateway between China and the rest of the world. According to Diana Choyleva of Enodo Economics, this repositioning is a result of China's efforts to regulate and control foreign investment. This development is likely to impact the role of Hong Kong in international trade and finance, and may have broader implications for US-China relations and global economic dynamics.
G7 countries aim to set upper limit for raw material imports from China
The G7 nations have announced their intention to establish an upper limit for raw material imports from China. This move is part of the ongoing tensions between the US and China, with the G7 seeking to reduce their dependence on Chinese imports. The decision reflects the escalating trade and geopolitical tensions between the West and China.
The AI Race Won't Be Won by the Best Model—But by the Fastest Military
The US Intelligence Community has identified China as the most capable competitor in the field of artificial intelligence, aiming to displace the US as the global AI leader by 2030. While the US currently leads in AI model development, China's ability to quickly deploy and integrate AI technology into its military gives it a significant advantage. The US is struggling to respond due to a policy vacuum and bureaucratic hurdles, allowing China to close the gap in AI capabilities.
Metallic debris with Chinese markings found on Batangas shore
Metallic debris with Chinese markings has been found on the shore of Batangas, Philippines, raising concerns about the origin and purpose of the debris. The discovery has sparked an investigation into the matter, with authorities working to determine whether the debris is related to any Chinese activities in the region. The incident comes amid ongoing tensions in the South China Sea, where China has been involved in territorial disputes with several neighboring countries. The Philippine governme
Why Trump’s talk of a ‘G2’ hits a nerve with allies
President Donald Trump's approach to China, referring to a 'G2' summit with Chinese leader Xi Jinping, is undercutting efforts by European allies to present a united front against China's growing economic threat. The Trump administration's tariff buildup against China has pushed more Chinese exports into European markets, leading Europe to consider taking initiative on its own to address the issue.
How the EU wants to protect itself from China's export power
The European Union is discussing ways to protect its industry from China's export power ahead of an EU summit. EU leaders agree that protecting its industry is crucial to competing with China, and several options are being considered.
Taiwan Launches Platform to Encourage Chinese Citizens to Engage in Espionage
Taiwan has launched a platform to encourage Chinese citizens to engage in espionage, featuring an AI-produced video on the website of the National Security Bureau. The move is seen as an escalation in tensions between Taiwan and China. The platform aims to gather intelligence from Chinese citizens, potentially straining relations between the two nations. This development is part of the broader context of US-China relations and regional geopolitical tensions.
Trump's Powerlessness: Who Still Fears the Superpower USA?
The US is facing increasing resistance from countries such as Iran, Israel, and those in Europe, with many no longer fearing the superpower. According to security researcher Peter Neumann, this is less due to America's waning power and more a result of Trump's erratic diplomacy.
Global Power Struggle Requires Redefinition of American Alliances
The global power struggle requires a redefinition of American alliances, with the US shifting its focus towards Asia, leaving the future of NATO uncertain. Europe should be able to cope with this development.
Taiwan opposition leader seeks to ease Washington's concerns over China stance during US trip
Taiwan opposition leader Cheng Li-wun is on a US trip to ease concerns over her party's stance on China, following her meeting with President Xi Jinping in April. The trip aims to address Washington's concerns about the Kuomintang's China policy. Cheng Li-wun's visit comes amidst ongoing tensions between the US and China. The Kuomintang chairwoman seeks to reassure the US about her party's stance on China
China 'strongly dissatisfied' with Pentagon move against top Chinese tech firms
China has expressed strong dissatisfaction with a recent move by the Pentagon against top Chinese tech firms. The move is seen as an escalation of tensions between the two countries, with China viewing it as an attempt to stifle its technological advancements. This development is part of a broader pattern of increasing competition and mistrust between the US and China.
US blocks foreign access to Anthropic's most advanced AI models: Report
The US has blocked foreign access to Anthropic's most advanced AI models, according to a report. This move is seen as a strategic decision to limit the spread of advanced AI technologies to other countries, particularly China. The report highlights the growing tensions between the US and China over AI development and usage. The US is taking steps to protect its technological advancements and prevent them from being accessed by rival nations.
Macron wants the G7 to tackle China. Beijing isn’t playing along.
French President Emmanuel Macron is attempting to address the issue of subsidized Chinese exports disrupting global markets at the G7 summit, but China is not cooperating and the Europeans and Americans are diverging on how to contain China's $1.2 trillion trade surplus. Macron's efforts to discuss global imbalances with China have been met with resistance, and it is unlikely that the G7 summit will deliver credible action on the issue. The EU has been calling for new trade defense measures to t
Economic Security in an Age of Strategic Competition
As US allies consider expanding commercial relations with China, there are concerns about the risks of economic security and intelligence breaches, drawing parallels with the Soviet Union's exploitation of détente during the Cold War. The US had previously limited the sale of sensitive technologies to the Soviet Union, but the Soviets were still able to collect significant scientific and technical intelligence through espionage. This historical context raises questions about the potential risks
China arrests US scholar of Myanmar on suspicion of spying
A US scholar of Myanmar has been arrested in China on suspicion of spying, further straining US-China relations and escalating regional tensions. The arrest has sparked concerns about the treatment of foreign nationals in China and the country's increasing assertiveness in the region. The US has yet to comment on the arrest, but it is likely to exacerbate existing tensions between the two nations. The incident may also impact China's relations with other countries in the region, particularly Mya
China Detains American Citizen for Alleged Espionage
China has confirmed that it is detaining an American citizen, Min Zin, on suspicion of espionage activities that allegedly compromise China's national security. The Chinese Foreign Affairs spokesman stated that Min Zin is subject to coercive measures by the relevant authorities. This incident may escalate tensions between the US and China
WuXi AppTec files complaint against US DoD for linking it to Chinese military
WuXi AppTec, a Chinese company, has filed a complaint against the US Department of Defense (DoD) for allegedly linking it to the Chinese military. The complaint is related to the DoD's decision to include WuXi AppTec in a list of companies with alleged ties to the Chinese military. WuXi AppTec denies any involvement with the Chinese military and is seeking to clear its name. The incident highlights the ongoing tensions between the US and China over issues of national security and trade.
China sanctions defense chief Gibo Teodoro
China has sanctioned Philippines Defense Secretary Gilberto Teodoro Jr., his wife, and their adult son, barring them from entering China and engaging in any transactions or activities with Chinese organizations or individuals. The sanction is in response to Teodoro's criticisms of China's actions in the South China Sea, which he has denounced as undermining the Philippines' sovereignty and security. The move is seen as a significant escalation of tensions between China and the Philippines, which
Chinese ships intrude into disputed South China Sea island waters
Taiwan has reported the intrusion of Chinese ships into the waters of a disputed island in the South China Sea, specifically the Spratley Islands. The island of Taiping is the largest in the contested archipelago, also claimed by China, the Philippines, and Vietnam.
Pentagon wants dozens of robot cargo boats
The Pentagon is seeking to buy dozens of autonomous cargo boats to resupply US Army units in the Pacific islands in case of a future conflict with China. The move is part of a Defense Innovation Unit solicitation for sea drones capable of delivering shipping containers through contested waters.
Merz hints at tougher China trade measures ahead of EU summit
German Chancellor Friedrich Merz hinted at tougher China trade measures ahead of the EU summit, citing unfair trade practices and the need to protect European interests. The EU is set to discuss how to respond to China's industrial overcapacity and subsidized exports, which are blamed for European deindustrialization. Merz's comments come as Germany's trade relationship with China has shifted to a significant deficit, prompting calls for a tougher EU trade policy towards China.
'I love the inflation': Trump comment on latest price jump sparks backlash
Donald Trump has sparked backlash with his comment on the latest inflation jump, stating he loves the inflation. He also predicted that inflation would decrease significantly after the Iran conflict ends.