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Xi Jinping’s U.S. Visit: A Display of Political Power Ahead of the 21st Party Congress

Xi Jinping is expected to visit the United States from September 23 to 25 and meet with President Trump on September 24, roughly one year before the 21st National Congress of the Chinese Communist Party (CCP). Chinese political observers say Beijing hopes the summit will help stabilize economic and business expectations, while Xi could use the high-profile diplomatic engagement to demonstrate his control over foreign policy and upcoming personnel arrangements within the Party.

Xi’s visit comes as attention focuses on whether he will continue as CCP General Secretary and Chairman of the Central Military Commission, potentially entering a fourth term. Beijing has not announced any such arrangements or publicly discussed a potential successor.

A Chinese political scholar said official-media coverage of a Xi-Trump meeting at the White House could reinforce Xi’s image as the leader directing China’s major-power diplomacy. A military affairs scholar said Xi’s overseas visit, amid continuing changes in the PLA leadership, could serve as a domestic display of his political influence and control over the military command system.

Chinese state media have already established a favorable narrative around Xi’s summit diplomacy. People’s Daily described head-of-state diplomacy in May as the “compass” and “rudder” of China-U.S. relations, saying Xi and Trump had helped “calibrate the trajectory” of bilateral ties at a critical moment. Beijing has also promoted the concept of building a “constructive China-U.S. relationship of strategic stability.”

Source: Radio Free Asia, September 9, 2026
https://www.rfa.org/mandarin/zhengzhi/waijiao/2026/09/09/china-xi-jinpings-visit-to-the-us-trump-21st-national-congress-of-the-cpc/

Briefings | | |   Government/Politics US-China Relations

U.S. Cracks Down on Chinese-Language Scam and Money-Laundering Marketplace

On September 9, 2026, the U.S. Department of Justice’s Scam Center Strike Force (SCSF) announced enforcement actions against Xinbi Guarantee, a Chinese-language illicit marketplace operating on Telegram. According to the Justice Department, the platform connected scam-center operators with vendors offering services such as creating fraudulent investment websites, laundering proceeds from telecommunications fraud, and recruiting trafficking victims to work in Southeast Asian scam compounds. Xinbi Guarantee also provided an escrow service to facilitate transactions between scammers and service providers.

A federal court authorized the seizure of the Telegram channels on September 7. In a coordinated operation, U.S. authorities froze approximately $52 million in cryptocurrency linked to money laundering and scam activity, bringing the SCSF’s cumulative cryptocurrency seizures to about $938 million.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) also sanctioned Xinbi Guarantee and identified multiple cryptocurrency wallets associated with the platform. OFAC additionally sanctioned two entities accused of supporting Xinbi’s operations. Treasury said Xinbi had processed more than $24 billion in digital assets and fiat currency since around 2022, underscoring the financial infrastructure supporting large-scale scam operations.

Source: Epoch Times, September 10, 2026
https://www.epochtimes.com/gb/26/9/9/n14845849.htm

Hot Topics | | |   Economy/Resources US-China Relations

China Threatens Retaliation Over U.S. Accusations of “Industrial-Scale” AI Distillation

Ahead of the upcoming Trump-Xi summit, where artificial intelligence is expected to be a key topic, China’s state-run People’s Daily published a commentary today pushing back against recent U.S. accusations that Chinese AI firms are engaged in “industrial-scale” distillation of American AI models.

The article, written under the byline “Zhong Sheng (钟声)” — a pseudonym for “China’s Voice,” frequently used by the paper for authoritative statements reflecting the Chinese government’s position — claims that a joint warning issued by the U.S. National Security Agency, the Cybersecurity and Infrastructure Security Agency, and the FBI has no legal basis. It argues that distillation is a standard practice used by AI companies worldwide, including American firms, and characterizes the U.S. crackdown as disguised protectionism rather than a genuine security concern. The commentary accuses Washington of applying a double standard — treating the same technique as routine when used by U.S. firms but as an “attack” when used by Chinese firms — and warns that Beijing will retaliate if its companies’ legitimate interests are harmed.

The U.S. agencies had alleged that Chinese firms including DeepSeek, Moonshot AI, Alibaba, MiniMax, and StepFun used variants of American AI models to train their own products, likely with the Chinese government’s knowledge, and described the activity as aggressive and malicious.

Distillation refers to using outputs from large, costly AI models to train smaller ones more cheaply. The dispute comes as the two countries prepare for a second Trump-Xi summit in Washington on the 24th, with AI expected to be a major topic; Reuters has reported the two sides plan a separate dialogue on AI safety risks in mid-September.

Source: Central News Agency (Taiwan), September 16, 2026
https://www.cna.com.tw/news/acn/202609160111.aspx

Briefings | | |   US-China Relations

China’s Foreign Ministry: Spreading Narratives Portraying AI as a Threat Serves No Party’s Interests

Chinese Foreign Ministry spokesperson Guo Jiakun said on September 14 that spreading narratives portraying AI as a threat does not serve the interests of any party.

A reporter asked: Not long ago, Dario Amodei, Sam Altman, Elon Musk, and others called on artificial intelligence companies to slow down the development of frontier technologies. Amodei said that China’s continued lead in artificial intelligence would pose a risk to U.S. national security. What is the Foreign Ministry’s comment on this?

“AI development concerns the common well-being of all humanity. All parties should work together to promote AI that is open, inclusive, beneficial to all, and used for good. Spreading various narratives about threats, engaging in confrontation and vicious competition, will only disrupt the global AI governance process and serve no party’s interests,” Guo said.

{Editor’s Note: This statement could suggest that China does not intend to slow its development of frontier AI technologies even if the United States chooses to do so.}

Source: Xinhua, September 14, 2026
https://www.news.cn/world/20260914/a3d886e5ebeb4307af30bf71df511550/c.html

Briefings | | |   @CS Information/Technology US-China Relations

China’s Gains and Costs from the Ukraine War and U.S.-Iran Conflict

Since the Ukraine crisis began in 2022, along with intensifying U.S.-Iran tensions and disruptions to Red Sea shipping, global geopolitical and economic structures have undergone major realignment. Beijing has maintained a “non-direct involvement” strategy, avoiding direct participation while benefiting from the disruptions. In the short term, China has gained advantages in energy, market share, renminbi internationalization, and strategic relief. However, China is likely to face significant long-term costs from Western sanctions, declining trust in Chinese companies, and worsening security conditions in East Asia.

China’s main benefits include:

  • Energy: China has become Russia’s largest energy customer after Europe reduced its imports of Russian energy. Discounted Russian oil and gas have provided China with lower-cost energy while creating opportunities for Chinese companies.
  • Market Share in Russia: Chinese firms have expanded rapidly in Russia as Western companies withdrew. China-Russia trade increased from about $100 billion before the war to more than $240 billion, while Chinese automakers now hold more than 60 percent of Russia’s auto market and Chinese smartphones account for more than 70 percent.
  • Renminbi Settlement: The war has accelerated yuan-based trade settlement. More than 90 percent of China-Russia trade is now reportedly settled directly in yuan and rubles, compared with less than 2 percent before the war.
  • Strategic Relief: Conflicts in Ukraine and the Middle East have consumed substantial Western military resources, potentially easing immediate U.S. and NATO pressure on China in the Indo-Pacific.

China also faces significant costs:

  • Western Secondary Sanctions: U.S. and Western sanctions are increasingly targeting third-country companies supplying Russia and Iran with dual-use technologies and other materials. Hundreds of Chinese and Hong Kong entities have been placed on U.S. sanctions or export-control lists, while the threat of secondary sanctions has prompted major Chinese banks to tighten or suspend some Russia- and Iran-related transactions.
  • Loss of Western Trust and Accelerating “De-risking” from China: Beijing’s support for Russia has accelerated European efforts to de-risk from China, potentially threatening access to China’s much larger Western markets. Chinese investments and infrastructure projects in the Middle East also face greater risks from conflict, including disruptions to construction, logistics, energy projects, and exports.
  • Worsening Northeast Asian Security Environment: The deteriorating security environment is a long-term concern. The growing military partnership between Russia and North Korea has strengthened Pyongyang’s position and could reduce Beijing’s influence over North Korea. Meanwhile, closer U.S.-Japan-South Korea security cooperation and deeper bloc-based confrontation could leave China facing a more militarized and polarized neighborhood.

Source:  Epoch Times, August 20, 2026
https://www.epochtimes.com/gb/26/8/20/n14833109.htm

Briefings | | |   @CS Geo-Strategic Trend US-China Relations

China Seeks to Overturn Missouri’s $24.5 Billion COVID-19 Judgment

Hubei Province and the Chinese Academy of Sciences have hired the U.S.-based global law firm White & Case to challenge a $24.5 billion default judgment awarded to Missouri over China’s handling of the COVID-19 pandemic. On August 31, the two Chinese entities asked a federal court in Missouri to set aside the judgment and dismiss the lawsuit. White & Case has assigned Washington-based senior litigation partner Christopher Curran, who has represented foreign governments in U.S. courts, to the case.

Missouri filed the lawsuit in April 2020, accusing China, the Chinese Communist Party, Hubei and Wuhan authorities, the Wuhan Institute of Virology, and other Chinese entities of concealing information about COVID-19 and hoarding personal protective equipment (PPE), contributing to shortages and higher prices in the United States. A federal court initially dismissed the case under the Foreign Sovereign Immunities Act, but the Eighth Circuit Court of Appeals revived Missouri’s PPE-hoarding claim in 2024.

After the Chinese defendants failed to appear in court, U.S. District Judge Stephen N. Limbaugh Jr. issued a default judgment in March 2025. The court initially awarded about $8.16 billion in compensatory damages, with the total subsequently increasing to approximately $24.5 billion under applicable federal law. Missouri Attorney General Andrew Bailey said the state would seek to enforce the judgment by targeting Chinese-owned assets, potentially including farmland in Missouri.

Missouri has argued that China’s challenge comes too late and vowed to continue pursuing the judgment.

Source: Epoch Times, September 1, 2026
https://www.epochtimes.com/gb/26/8/31/n14840304.htm

Briefings | | |   @CS US-China Relations

Beijing Claims China’s Cooperation with Iran Is Legitimate and Should Not Be Disrupted

On August 24, the United States launched Operation Economic Outcast, a new campaign aimed at economically isolating Iran and targeting its financial and commercial networks. The Trump administration also warned countries and entities continuing to support Iran that they could face U.S. sanctions.

Xinhua News Agency reported China’s response, emphasizing that its cooperation with Iran has always been conducted within the framework of international law.

At a regular press briefing on August 25, Chinese Foreign Ministry spokesperson Lin Jian said China has repeatedly expressed its firm opposition to unilateral sanctions that lack a basis in international law and have not been authorized by the UN Security Council.

Lin said economic warfare and “maximum pressure” would not help resolve disputes but would instead further intensify tensions and conflicts, create spillover risks, disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries. He said the immediate priority should be to de-escalate the situation and return to dialogue and negotiations as soon as possible.

Lin said China’s cooperation with Iran has always been conducted within the framework of international law and should not be interfered with or disrupted. He added that China is closely monitoring relevant developments and will take all necessary measures to firmly safeguard its rights and interests.

Source: Xinhua, August 25, 2026
https://www.news.cn/world/20260825/4f45e922e10649b29e9a0c89bbaf83d6/c.html

Briefings | | |   @CS US-China Relations

U.S. F-1 Visas Issued to Chinese Students Fall Sharply, CIS Report Says

The U.S. State Department issued 40,034 F-1 student visas to Chinese nationals from May through August 2025, down 46 percent from the average for the same period from 2017 to 2024, excluding 2020, and 34 percent from 2024, according to data released by the Center for Immigration Studies (CIS) on August 3. The May–August period accounts for most annual F-1 visa issuances as students prepare for the upcoming academic year.

The CIS report cited concerns that some Chinese students have been involved in espionage and theft of commercial secrets, while acknowledging that most Chinese students do not necessarily have such intentions. It cited a U.S.-China Economic and Security Review Commission report saying Xi Jinping has described overseas Chinese students and scholars as important to China’s efforts to become a global technological and military power.

The report argued that some Chinese students may face pressure from the Chinese government to assist its interests. It suggested considering restrictions on Chinese students entering the United States or studying STEM and other strategically sensitive fields. If such measures are not feasible, the report argued that reducing the number of Chinese students in U.S. higher education could still lower potential espionage and technology-theft risks and thereby strengthen U.S. national security.

Source: NTDTV, August 6, 2026
https://www.ntdtv.com/gb/mkt_ipad/2026/08/06/a104121777.html

Briefings | | |   US-China Relations