Watch The Policy Circle’s Move the Needle on the threats of China within the United States and how it impacts your daily life featuring Representative Mike Gallagher, Chairman of the Select Committee on China, and Dr. Jacqueline Deal, President & CEO of Long Term Strategy Group and Senior Fellow of the Foreign Policy Research Institute (53 min):

The relationship between China and the U.S. is fraught with tension and mistrust. Yet, both nations are inextricably linked and interdependent. This Policy Brief focuses on the impact of China’s increasingly aggressive tactics on our daily lives in the United States.

Here are some acronyms that are helpful in understanding this topic:

PRC: The People’s Republic of China, or “China.” The nation was founded on October 1, 1949, by Communist leader Mao Zedong.

PLA: The People’s Liberation Army. The military arm of the PRC.

CCP: The Chinese Communist Party. The founding and ruling political party of China.

Since its inception, the relationship between China and the United States has been characterized by mutual distrust. This arose in 1949, following the Chinese Civil War when President Truman acknowledged the Nationalist government of Taiwan as the legitimate ruling body of China. This decision came after the Communists, led by Mao Zedong, defeated the Nationalists.

The bilateral relationship between China and the United States is complex and constantly changing. It took several decades for tensions to ease and for a formal diplomatic relationship to be established in 1979. Despite early efforts focusing on economic and strategic cooperation, ongoing disagreements regarding trade, human rights, territorial disputes, state-run enterprises, and other issues have strained the relationship. For more on socialism and communism, check out The Policy Circle’s Socialism Brief.

For a detailed timeline of the U.S.-China relationship, see here.

To watch a brief overview of the implications of the U.S.-China relationship, watch this Kite & Key Media video here (7 min):

As already mentioned, the U.S. and China have strengthened each other’s economies, but both are starting to look elsewhere for partnerships. This has been partially due to ideological differences and certainly due to espionage and abuses.

INTERLINKED ECONOMIES

The Chinese and American economies are strongly interlinked. This has only been bolstered by China’s relatively recent ascension from the factory of the world to a technological and military leader today. Though the U.S. and Chinese economies increasingly depend on each other, their governments and ambitions greatly differ. China is looking to use this interdependence to its advantage. As the CCP works to move China from a global manufacturer into important technologies, they are also trying to ensure that other countries, including the United States, depend on China more than China depends on them.

The values are ultimately in opposition. The Chinese government lacks respect for human rights and religious freedoms that feature prominently in the United States. China runs a communist and authoritarian government. The state controls commerce, media, land, and most businesses. In stark contrast with the United States, there are few individual freedoms.

DISTRUST AND INFLUENCE

The aforementioned mutual distrust is sustained in numerous sectors today, including international trade, climate, and military might. It manifests as a direct threat to American soil. The CCP is building influence operations, buying up farmland, conducting economic espionage, infiltrating academic institutions, moving narcotics across our borders, and collecting data on American citizens. This poses a direct threat to American intellectual property and national security, in addition to our values and well-being.

China’s influence in the United States has been bolstered since President Xi Jinping’s reign began in 2013. The Chinese leader strengthened state control; some have said he has been the most authoritarian leader since Chairman Mao. Xi abolished term limits and accelerated long-standing military and economic goals. This has raised serious concerns from U.S. leaders who see China’s “Made in China 2025” program and “the great rejuvenation of the Chinese nation” as a direct threat to undermine the United States.

CASE STUDY: ESPIONAGE

​​Xu Yanjun, a Chinese intelligence officer, infiltrated GE Aviation in Ohio, soliciting proprietary information from employees to replicate aviation technology for the Chinese government. He planted malware on a laptop from a joint venture company of GE Aviation. Xu recruited an official from a prominent Chinese university to message GE Aviation employees on LinkedIn, offering them fully-funded trips to China and Europe to present to the university. While employees were out at dinner, Xu hacked their computers. In 2018, Xu was arrested and convicted of economic espionage. This is one example of a recurring pattern that is harming innovation, growth, and businesses in the United States.

Unfortunately, this is just one of many examples of Chinese espionage. The FBI noted that Chinese intelligence officials utilize social media, including LinkedIn, to recruit targets. Director Wray warned that “Chinese government hackers have stolen more of our personal and corporate data than every other nation combined…While they pull ahead, they push our companies and workers behind. And that harm—company failures, job losses—has been building for a decade to the crush that we feel today.”

Individuals and businesses must remain vigilant against these threats. To see more of this case study, watch this video (3 min):

WHY IT MATTERS

The Chinese economy differs significantly from that of the United States primarily because of its larger number of state-owned companies. China’s objective to gain control over the global supply chain and make itself less reliant on the world while increasing the world’s dependence on China, as described by one U.S.  Secretary of State Antony Blinken, poses a threat to the United States. Furthermore, the methods employed by the Chinese government to achieve this goal involve breaking trade agreements and jeopardizing the well-being of Americans. The Chinese government aggressively pursues its own initiatives without considering American laws, values, or the safety of the American people.

China aims to replace the U.S. as the world’s superpower and challenge the freedom-based model that the U.S. represents. The autocratic governmentis looking to expand and advance its technology sector. China is growing to be a substantial threat to the unilateral status and democratic values of the United States. Watch the director of the Cybersecurity and Infrastructure Security Agency (CISA) testify before a congressional committee in early 2024 (6 min):

Economic espionage, too, is a threat, as evidenced by the case study above. The Chinese government is able to pose as many state-run companies to compete with the United States. To gain an edge, they will often attempt to, and succeed in, stealing secrets and information. To learn about more recent economic espionage attempts by the Chinese government, listen to Inside the FBI: The China Threat.

American’s privacy, safety, freedom, and prosperity are all at stake. U.S. citizens are the ultimate victims when China steals technology and information. In 2022, China stole more American personal data than any other country. This trend has continued over the past few years – Watch the FBI director testify before a congressional meeting in early 2024 (6 min):

It is important to distinguish the Chinese people from their government as we discuss these threats. As the FBI pointed out, “The adversary is not the Chinese people or people of Chinese descent or heritage. The threat comes from the programs and policies pursued by an authoritarian government.”

China’s lack of freedom of speech, religion, assembly, and enterprise and election protections shape a distinct economy and opposes the values of the United States. State rule dominates in China, where the political elite wields immense power, and the absence of critical freedoms allows the government to control the narrative without being held accountable.

Americans must understand the complex and ever-changing relationship between the U.S. and China. China’s state-driven economy and desire to dominate the global supply chain threaten U.S. economic interests and democratic values. The Chinese government’s disregard for American laws and values puts citizens’ privacy and safety at risk. Moreover, China’s lack of basic freedoms creates an entirely different economy, with values opposing those in the United States.

After Mao Zedong declared victory in 1949 over the Nationalist Party, the Kuomintang, the United States severed diplomatic relations with the Communist government. During World War II, the United States supported the Nationalists, later known as the Republic of China. The Nationalists retreated to Taiwan, influencing the current relationship between the United States, China, and Taiwan. In 1950, the Korean War broke out. The United States and China supported different sides, leading to the Taiwan Strait Crisis in 1953.

Mao’s communist policy movement, known as the Great Leap Forward, caused an estimated thirty million people to die of starvation in China in the early 1960s. Mao’s policies caused significant tensions between China and the Soviet Union (now Russia). Mao’s rejection of the Soviet model of communism and his push for China to take a leadership role in the international communist movement led to a split between the two countries. The Soviet Union criticized Mao’s economic policies and condemned China’s Cultural Revolution as a destabilizing force in the international communist movement.

In the late 1960s, border disputes between China and the Soviet Union erupted into armed conflict, and the two countries became bitter enemies. Mao believed the Soviet Union had become revisionist and betrayed the true Marxist-Leninist cause. At the same time, the Soviet Union saw China as a threat to its leadership in the communist world. See The Policy Circle’s Asia-Pacific Brief for more regional history and the Socialism Brief for more background on socialism and communism.

China wanted to balance out Soviet influence and gain access to Western technology and investments, so it sought to improve relations with the United States in the 1970s. Under President Jimmy Carter in 1979, the U.S. recognized the Chinese Communist Party (CCP) as China’s rightful government and established full diplomatic relations. This meant the U.S. no longer treated Taipei as the capital of all of China but adopted its own “One China policy,” which acknowledges Beijing’s “One China principle,” while maintaining a special relationship between the U.S. and Taiwan. Deng Xiaoping, the Chinese leader, implemented economic reforms that opened up China to foreign investments and trade.

In 2012, Xi Jinping became General Secretary of the Communist Party and president in 2013, replacing Hu Jintao in multiple positions. Xi Jinping initiated China’s “rejuvenation” phase. Since then, U.S.-China relations have been marked by trade wars, a global pandemic, humanitarian crises, and other challenges. In 2018, Xi Jinping made a notable decision to remove term limits, allowing him to rule indefinitely.

Here are some key numbers to know about China and the United States:

• Population: China is the world’s most populous country, with approximately 1.4 billion people. The U.S. has a population of approximately 331 million.
• Gross Domestic Product: China is the world’s second-largest economy, with a GDP of approximately $17.7 trillion. The U.S. is the world’s largest economy, with a GDP of approximately $27.3 trillion.
• Trade: As of October 2024, the U.S. has imported $279 billion worth of goods from China, making China the United States’ largest source of imported goods.
• National Debt: The U.S. national debt held by China was $816 billion as of August 2024. The total U.S. federal debt was over $35 trillion in 2024. China’s public debt reached $4.23 billion in 2024, 90% of its GDP.
• Military Tensions: The U.S. has sold $50 billion of arms and military equipment to Taiwan between fiscal years from 1950 to 2024, including fighter jets, tanks, drones, and missiles.
• Lobbying: China has spent $418 million since 2016 to influence U.S. politics, more than any other foreign country.

These numbers help provide insight into the complex relationship between the U.S. and China.

LAND OWNERSHIP

A notable economic exchange that threatens Americans here at home is the increasing purchase of U.S. farmland by foreign entities, particularly those with ties to China. Foreign-held land has been of particular concern to Americans in the past. China has consistently owned a low proportion of landcompared to other countries. See the USDA Farm Service Agency reports for the latest updates on foreign-held acreage.

INTELLECTUAL PROPERTY AND INNOVATION

According to the FBI in 2019, “[t]he annual cost to the U.S. economy of counterfeit goods, pirated software, and theft of trade secrets is between $225 billion and $600 billion.” This is part of a larger problem (for the rest of the world) that the Chinese government has encouraged. The current system in China does not incentivize or reward individuals or companies for innovation and progression. Therefore, these companies, who are still under pressure to keep up with the rest of the world, are encouraged and aided by the state to steal from others.

Further, the Chinese government has developed a far more extensive hacking operation than the U.S. and allies have combined. This is of particular concern as tensions escalate. Watch the director of the FBI testify before a congressional committee in early 2024 (6 min):

DRUGS

Another costly statistic comes from the opioid epidemic that plagues the United States, driven by illicit synthetic fentanyl. Though the drugs often come through Mexico, they are sourced from China. Fentanyl contributed to the dramatic rise in drug overdose deaths in the United States, which topped 100,000 in 2021. For more on this topic, see The Policy Circle’s Opioid Epidemic Brief.

CRITICAL TECHNOLOGY

In 2023, China led 37 out of 44 critical and emerging technologies analyzed by a new report. This included nuclear energy, batteries, biofuels, robotics, advanced explosives and energetic materials, and advanced data analytics. Seven of the globe’s ten research institutions in those areas are in China. The report is from the Australian Strategic Policy Institute and is funded by the U.S. State Department. It was found that China excels more than the U.S. in its methodology in space and defense technologies. China has been less successful with advanced semiconductors, and the United States has made concerted efforts to restrict the industry in China.

FEDERAL

MILITARY

The Chinese government uses the PLA to support its global ambitions. The U.S. response to this comes from the federal level, which, according to the Constitution, is the only mandatory function of the federal government. As tensions with the Chinese government appear to be growing, the Department of Defense (DOD) is focused on China and other contentious areas in Asia, like Taiwan, Hong Kong, and the South China Sea, which is critical to PLA aviation capabilities. The DOD found that China is the “only competitor with the intent and, increasingly, the capacity to reshape the international order.”

One of the most pressing issues is Taiwan’s independent status. Since its consolidation of the mainland, the CCP has ramped up diplomatic, political, and military pressure against Taiwan. The CCP is ultimately preparing to unify Taiwan with China. China exhibits provocative behavior toward Taiwan to signal displeasure at “deepening Washington-Taipei ties.” Since 1950, the U.S. has authorized the sale of approximately $50 billion in arms to Taiwan. However, it is worth noting that there is a significant backlog due to delays in the United States. According to the DOD, Taiwan has positioned itself as a “beacon of democracy.” The United States’ response is to contribute to peace and stability in the Taiwan Strait by providing Taiwan with materials for self-defense.

In all of these regions, the CCP is looking to influence institutions and public opinion to accept the narrative surrounding their priorities. One such priority is the “one China principle,” or unifying Taiwan with the mainland’s government. The Belt and Road Initiative (BRI), political control over Hong Kong, and territorial and maritime claims in the South China Sea and East China Sea are all also high priorities for the regime.

Russia’s invasion of Ukraine has also raised China concerns among experts and DOD officials. China and Russia are united in their “common rivalry” with the United States. Though China has not supported Russia in its efforts in Ukraine, they have blamed NATO for provoking Russia.

HUMAN RIGHTS ABUSES

The U.S. federal government is also involved in combating human rights abuses in China, with a particular focus on the regions of Tibet and Xinjiang. In Tibet, the lack of religious freedom is a major issue as the Chinese Communist Party (CCP) considers Tibetan Buddhism a threat. CCP officials monitor funding transfers in the region, banning Tibetans from sending donations to projects associated with the Dalai Lama or his Tibetan government-in-exile, according to the international nonprofit Human Rights Watch.

In Xinjiang, CCP officials carry out “preventative control,” resulting in the mass detention of Uygher Muslims and other minority groups. These individuals have been subjected to forced disappearance, torture, forced sterilization, sexual abuse, forced labor, and more. Nearly one million children have been separated from their families and forced to learn CCP ideology, according to research from 2020.

To hold the CCP accountable, the U.S. has taken measures such as visa restrictions, financial sanctions, and import restrictions. In December 2021, President Biden signed the Uyghur Forced Labor Prevention Act into law, banning China’s forced labor products from entering the US market. The U.S. has also boycotted the 2022 Beijing Winter Olympic Games. Numerous other human rights abuses, such as China’s Zero-Covid Policy and pro-democracy protests in Hong Kong, continue.

ILLEGAL DRUGS

Stopping drug trafficking is a responsibility of the federal government under the authority granted by the Commerce Clause of the United States Constitution. Specifically, Article I, Section 8 of the Constitution allows Congress to regulate commerce with foreign nations, among the several states, and with Indian tribes. This has been interpreted to include the regulation of drug trafficking and other illicit activities that affect interstate commerce. Additionally, Congress has passed laws such as the Controlled Substances Act and the Comprehensive Drug Abuse Prevention and Control Act to combat drug trafficking and drug abuse.

China is a key supply source for precursor fentanyl chemical products, especially to Mexican cartels. As analysis on this issue continues, slim profit margins appear to keep large criminal networks out of the space currently occupied by smaller crime rings. The overall relationship between the U.S. and China has limited the operations of the counternarcotics taskforce that was initially created in the 2010s. In 2019, China enacted a large policy change, at the United States’ request, that created a significant reduction in the flow of fentanyl directly into the United States, but it has continued to flow into Mexico and then up through the shared border. Even with the change, U.S. law enforcement finds it difficult to shut down operations in China due to strained relations.

Federal action has been taken to combat this crisis, including the SUPPORT Act, which invests in addiction prevention, treatment, and protection, as well as the STOP Act, which increases coordination between the U.S. Postal Service and U.S. Customs and Border Protection to curb opioids in the mail system. The National Institutes for Health has also launched the HEAL initiative, investing billions of dollars to speed up scientific solutions to stop the national opioid crisis.

TIKTOK

While the US Constitution does not have a specific provision allowing the federal government to ban platforms like TikTok, it does grant broad powers to regulate interstate commerce under the Commerce Clause. This interpretation gives the government authority to regulate social media platforms that operate across state lines, including those posing national security risks. Furthermore, the government can use executive orders and other legal measures to address perceived threats to national security or public safety.

TikTok’s parent company, Bytedance, is based in Beijing and is subject to the Chinese Communist Party’s censorship and data collection policies, which poses a risk to American users. The algorithm used by TikTok can track user interests to push content to users. This can present a problem for younger audiences since they might be exposed to content that is not appropriate. The algorithm pushes people to watch more extreme content and can predict what content is most likely to keep a user on the platform. Communist Party cells are embedded in TikTok’s parent company, Bytedance’s corporate structure.

TikTok has faced scrutiny and pressure from the American public and the government, with many states banning or planning to ban the app on state government devices. In December 2022, Congress banned TikTok on federal government devices. In March 2023, TikTok CEO Shou Zi testified in Congress defending the app but was met with skepticism from legislators. Members of Congress introduced bipartisan legislation in December 2022, called the Anti-Social CCP Act, to “protect Americans by blocking and prohibiting all transactions from any social media company in, or under the influence of, China, Russia, and several other foreign countries of concern.”

To learn more, watch the videos below:

SUPPLY CHAIN

The Chinese and U.S. economies are deeply intertwined. China is the third largest export partner of the United States, after Canada and Mexico. Our nations are mutually reliant on each other for countless products. China plays a dominant role in global supply chains. The CCP is trying to expand this further, bringing more global supply under itself, which will harm the U.S. economy.

The U.S.-China Economic and Security Review Commission’s hearing on “U.S.-China Competition in Global Supply Chains” detailed the major issues. China is the world’s largest manufacturer, dominating the supply chain in rare earths, certain military defense products, and various household products like dishwasher parts and laptop computers. A State Department-funded report found that China is leading in 37 of 44 critical technologies, such as nuclear energy and advanced aircraft engines. Businesses are continuously lured to China because manufacturing is still largely less expensive, yet the CCP’s increasing willingness to “weaponize” its position has risks for the U.S.

The pandemic revealed even deeper dependencies on China for manufacturing. On average, China’s factory price is 30% less expensive than that of the United States. This has made China a manufacturing hub that allows businesses to contract out orders at scale for less than domestic factories.

While there is clearly a vulnerability, some believe “there is a fundamental conflict between China’s policy goals and the structure of global supply chains.” Government efforts to utilize tax policy or re-shore manufacturing and structure taxes to encourage businesses to stay could lower the supply chain risk.

TARIFFS

Starting in 2018, a significant amount of tariffs have been levied on goods imported from China. These have had several effects on the long-run economic outlook, consumers, and prices. The range of goods subject to the extra cost ranges from finished products ready to be bought, such as washing machines, to materials to make products domestically, like steel. One of the benefits of these tariffs has been the added income to the federal government.

Tariffs operate very similarly to increasing taxes and have many of the same effects on the domestic economy. The additional variable that accompanies tariffs is the response from the international community. Other countries may, and often do, respond in kind. These actions can quickly become a trade war, and economic activity between the parties will become much more difficult and expensive.

Despite some protest, many tariffs are still in effect. Part of the rationale behind instituting and keeping them in place is China’s unfair business practices, which allow them to undercut domestic manufacturers. The U.S. Trade Representative’s office reviews the tariffs through a process that includes public input and implements changes as it sees fit.

STATE AND LOCAL

State and local governments, too, deal with threats from the Chinese government. CCP police stations in American cities, risky Chinese investments in U.S. pension funds, along with business espionage, academic espionage, and anti-American propaganda, threaten Americans in their home states and cities.

CCP POLICE IN THE UNITED STATES

Illegal Chinese Overseas Police Stations have been found in 53 countries around the globe. Though the Chinese government claims these are to oversee Chinese “passport services,” this is untrue. Between April 2021 and July 2022, Chinese police have “persuaded” 230,000 Chinese in foreign countries to return to China. Such persuasion tactics include “denying the target’s children in China the right to education, and other limitations on family members, punishing those without suspicion of any wrongdoing by ‘guilt by association’ (similar to the North Korean practice).” Relatives in China who do not assist the police in persuading family members could be punished.

Police stations in major U.S. cities such as New York and Los Angeles have been found. Members of the Chinese community were outspoken in their protests outside the NYC Chinese police station that has been since shut down.

FARMLAND AND AGRICULTURE

The National Association of Realtors found the Chinese government bought more than $6 billion of U.S. real estate between March 2021 and March 2022, making it the third top buyer after Canada and Mexico. The top states for foreign buyers are Florida, California, Texas, Arizona, New York, and North Carolina. Chinese ownership itself is not cause for concern. Yet China’s interest in U.S. agriculture is not benign.

China has the largest pig herd in the world, roughly half of the world’s total. Multiple swine fever outbreaks on the Chinese mainland have shaken the industry. China offshores hog herds to the U.S., shifting the environmental and medical impacts to local domestic communities.

Agricultural espionage is also widespread. It is often cheaper to steal burgeoning technology than to attempt to recreate it, and the Chinese government has been caught countless times doing so. The potential weaponization of genetically modified seeds, in particular, poses immense economic and food security threats to the United States.

Some states are advocating for the divestment of foreign investments in American farmland. Texas state senator Lois Kolkhorst introduced legislation to ban foreign ownership of Texas land amid a former Chinese People Liberation Army member’s purchase of Texas farmland near Laughlin Air Force base.

FINANCE

State leaders are increasingly concerned about Chinese company shares in American state pension funds. While these investments can yield high returns due to China’s high growth history and potential, they are also considered risky investments due to Chinese business ties to the CCP. Infamously, the CCP halted Ant Group Co.’s planned $37 billion initial public offering (IPO). The IPO would have been highly lucrative. Yet the CCP stopped the deal, likely because it could have made the company and Jack Ma, already the country’s richest man, too powerful.

Many other financial concerns surround China, especially as its leader declared its ambition to dethrone the U.S. dollar as the primary world currency.

THE PRIVATE SECTOR

ESPIONAGE

American businesses of all sizes are at risk of economic espionage from the Chinese government. China aims to control supply chains and directly influence and change global market conditions. The CCP uses businesses to pursue its global goals.

As mentioned earlier, a small energy company in Charlotte, North Carolina, hired a Chinese national and chemical engineer to lead their expansion into China. He disappeared and was later discovered to have stolen sensitive trade secrets as part of the Thousand Talents Plan. Learn more about this example in the following video (33 min):

The scale of espionage efforts is steadily increasing, threatening to overwhelm governments and businesses. China’s Five-Year plans are public. If you run a publicly listed company, the FBI warns executives to take note. China will use “whatever means possible” to meet its goals. The FBI encourages companies to establish relationships with their local FBI field offices.The FBI encourages companies to establish relationships with their local FBI field offices.

This recurring economic espionage raises questions about the CCP’s sincerity in any conflict. Recently, the CCP claimed the high-altitude balloon spotted over the United States was not a spy balloon. We now know that U.S. military intelligence was transmitted back to Beijing.

PROPAGANDA AND INTERFERENCE

Chinese news agencies, including Xinhua, are controlled by the Chinese Communist Party (CCP). Their goal is to shape perspectives on China and misinform audiences on public events in the US. One such news agency, Xinhua, produced a docuseries called “America’s Dark History Trilogy” to smear US leadership and spread other propaganda, including conspiracy theories about the COVID-19 virus and framing the US war in the Middle East around war crimes. The stated goal of Xinhua is to “accelerate China’s discourse power and influence,” according to reporting by Medium.

Chinese propaganda efforts are not limited to the media. In Australia, China interfered with elections in an attempt to elect pro-China candidates. Though the efforts were intercepted and stopped by Australian forces, a former Chinese military intelligence official was elected to Parliament in New Zealand in 2011.

China has spent more than any other country on foreign agents registered under the Foreign Agents Registration Act (FARA). But, this money has been funneled into two media companies that China owns, both of which have small audiences in the United States.

ACADEMIA

The CCP funds and runs Confucius Institutes, which is intended to provide Chinese language instruction worldwide. Yet they have attracted significant controversy, leading many U.S. universities to terminate their contracts with the institutes over the past four years. U.S. universities cited numerous reasons for ending the contracts, including concerns about academic freedom, encouragement to terminate by some Members of Congress, the potential for Chinese government influence, and risks to national security. Members of Congress have been openly critical of the programs. There are now far fewer, but not zero, Confucius Institutes in the United States, though China has been rebranding the Institutes. The FBI details numerous case studies of U.S. students targeted to gain access to information or persons of interest to the CCP.

THE NONPROFIT SECTOR

The nonprofit sector has taken the reins on education and advocacy regarding the Chinese government’s actions and those implications for the United States.

Human Rights Watch, for example, dives deep into the CCP’s mass surveillance practices, lack of religious freedoms, lack of First Amendment Freedoms, and discrimination based on sexual orientation.

Other nonprofits offering expertise in U.S.-China relations include the RAND Corporation, the Council on Foreign Relations, the Hudson Institute, the Brookings Institution, and the American Enterprise Institute.

The ambitions of the CCP vary across sectors. For example, Made in China 2025 and “the great rejuvenation of the Chinese nation.” But these efforts are facing headwinds. First, China’s economy is slowing. The economic growth rate fell to 3% in 2022 after growing 8.1% the year prior. A real estate slump, shrinking workforce, aging population, and growing distrust from the West are a few reasons.

China has more than four times the population of the US, but demographic trends are not in their favor to grow. This has implications for their future economic and military might. Fertility rates and population growth rates are on the decline.

China owns $981 billion of U.S. debt and is the world’s largest creditor, loaning $1.5 trillion to 150+ countries.

As mistrust continues to brew between China and the United States, business and political leaders have started increasingly talking about decoupling. While for the U.S., decoupling involves discouraging imports to protect U.S. jobs and infrastructure, decoupling from China would be one way for the country to leverage its independence for advancement on the global stage.

The relationship between China and the United States is fraught with distrust and conflicting values. The Chinese Communist Party’s (CCP) ambition for global domination and lack of respect for U.S. values and the rule of law threaten American citizens and national security.

Key points to remember include:

• The U.S. Declaration of Independence states that governments “deri[ve] their just powers from the consent of the governed,” not vice versa. The CCP believes its power supersedes that of the individual, withholding secrets from citizens, erasing parts of history, and weaponizing people to further its agenda.
• The CCP’s plan to bring fundamental technologies and resources under its control has far-reaching consequences for everyday Americans, who rely heavily on Chinese products and services.
• Understanding the differences between the U.S. and Chinese governments and staying informed on the risks posed by the CCP is crucial for protecting American interests and values.

1. Farmland Risk: Identify if your state is allowing Chinese purchase of U.S. farmland. Do you have any sensitive military or government properties near you? Find out what your state is doing to vet foreign purchases of U.S. properties.
2. TikTok Risk: Is your state one of the 27 that bans TikTok on government-issued devices? What are your state’s rules on TikTok? Contact your members of Congress and ask them to ban TikTok on government devices. Invite them to publicly speak on their reasoning to spread awareness for private families.
3. Financial Risk: Are you investing in Chinese companies? As a government employee, is your pension fund invested in Chinese companies? Explore your state Treasurer’s website to see what your state is doing about China risk.
4. Academic Risk: Does your local university have a research arm with technical applications? Are government-funded research projects properly safeguarded? Inquire about your college/university ties with China. Determine how much research is funded by China. Review the foreign adversary techniques detailed by the FBI. Ensure your university is adequately prepared to thwart insider threats. Develop strong risk management procedures with university leadership.
5. Business Risk: Do you have access or connections that would make you a target for CCP adversaries? Do you own a technology-related business listed in China’s Five-Year Plan? Do you have a security clearance? Ensure your company has a robust security strategy. Review the FBI’s recommended steps to safeguard your company here, including what to look for. If you think economic espionage has occurred, contact the FBI and review their reporting checklist here.
6. Personal Risk: What are the signs a foreign adversary might target you? See the FBI’s list here.