China faces a bleak economic outlook with a historic real-estate crisis, high youth unemployment, and a crisis of confidence among consumers and investors. President Xi Jinping, in his third term, is expected to address these issues, but the Third Plenum, a critical economic meeting of the CCP's Central Committee, has been unexpectedly delayed. The Third Plenum is known for setting major economic policies and reforms, and its postponement has raised concerns about the direction of China's economy.

Despite claims by China's Global Times that the West is divided over military aid to Ukraine, the U.S. and European Union remain united in their opposition to Russian aggression. They have imposed economic sanctions, provided defensive military aid, and supported refugees. The EU has pledged significant military aid, and even traditionally neutral countries like Switzerland have joined the sanctions. Majorities in the EU and Britain support military aid for Ukraine. The U.S. and EU continue to encourage peace talks, despite Russian deception and Chinese skepticism. The UN has passed resolutions condemning Russia's war, but China abstained. The war has caused substantial economic damage to Ukraine and resulted in numerous civilian casualties.

The United States is perceived as lagging behind in countering China's growing geopolitical influence, particularly through the Belt and Road Initiative (BRI). The Council on Foreign Relations released a report highlighting U.S. inaction and the need for more substantial investment in many BRI countries. The Biden administration has launched the SALPIE Initiative to strengthen economic collaboration with island nations and counter predatory investment practices. The status of the Trump-era Blue Dot initiative is uncertain, and there are calls for an 'infrastructure czar' to centralize U.S. efforts. The Quadrilateral Security Dialogue, involving Australia, India, Japan, and the U.S., is seen as a potential platform for promoting infrastructure in Asia.

A suspected Chinese spy balloon was shot down by the U.S. after drifting across U.S. airspace and near military sites, leading to the postponement of Secretary of State Blinken's visit to Beijing. China's claim that the balloon was for meteorological research was contradicted by U.S. officials, who identified it as part of a surveillance fleet capable of maneuvering and collecting intelligence. The balloon's path included sensitive U.S. bases, and it exhibited capabilities inconsistent with typical weather balloons. This incident marks another instance of Chinese surveillance balloons entering U.S. airspace, with previous occurrences during both the Biden and Trump administrations.

The U.S. Justice Department charged 13 Chinese nationals, including two suspected intelligence officers, with crimes related to espionage and obstruction of justice. The officers, Guochun He and Zheng Wang, allegedly attempted to bribe a U.S. government employee to steal documents from the prosecution of Huawei Technologies. The Chinese Foreign Ministry criticized the U.S. actions, claiming ideological bias. The U.S. informant was actually a double agent working for the FBI. The charges include efforts to obtain confidential information on Huawei's legal case, with payments made in Bitcoin. If convicted, He could face up to 60 years and Wang up to 20 years in prison. Both suspects are currently at large.

Evidence supports the U.S. trade ban on goods made with forced labor in Xinjiang, where China is accused of human rights abuses against Uyghurs. Reports and research indicate that Uyghurs are used as forced labor in various sectors, with over 80,000 transferred out of Xinjiang to work in factories across China. The U.S. Uyghur Forced Labor Prevention Act, signed by President Biden, enforces a presumption that goods from Xinjiang are products of forced labor, affecting sectors like fashion and renewable energy. Brands like Nike have been implicated in using Uyghur labor under coercive conditions.

Shanghai is experiencing its worst COVID-19 outbreak since the pandemic began, with strict lockdowns in place. Experts and reports suggest that China's official COVID-19 death counts are significantly underreported, citing the country's narrow definition of COVID-caused deaths and the absence of 'excess deaths' tracking. Comparisons with other regions, such as Hong Kong, and international guidelines from the WHO and CDC, highlight discrepancies in China's reporting. Studies indicate that underreporting of COVID-19 deaths is a global issue, with varying degrees of disparity among different countries.

China has been using economic coercion as a foreign policy tool, employing measures such as trade restrictions, tourism curbs, and targeting global firms to exert influence and retaliate against countries and companies that challenge its core interests. Examples include trade actions against Lithuania, Australia, Japan, Norway, the Philippines, South Korea, and Mongolia, as well as tourism restrictions on Taiwan, South Korea, and the Philippines. China also targets multinational companies, as seen with the Far Eastern Group, Houston Rockets, and international airlines and hotels over Taiwan listings. While China denies these actions, citing U.S. economic coercion, its approach is characterized by informal, extralegal measures, contrasting with Western formal legal sanctions.

The Chinese Foreign Ministry's claim that foreign businesses in Hong Kong are more stable due to the National Security Law is contradicted by multiple surveys from the American Chamber of Commerce in Hong Kong. These surveys indicate that U.S. businesses are cautious and consider the business environment unstable, with many considering relocation due to the law. The National Security Law, which criminalizes various acts and has broad extraterritorial reach, has led to concerns about the erosion of freedoms and legal uncertainties for businesses. Actions taken under the law, such as forcing telecom providers to block websites and ordering companies to disable pro-democracy sites, have raised significant concerns among the international business community and legal experts.

Chinese state media and officials have been spreading disinformation suggesting the COVID-19 virus could have been engineered in the U.S., particularly targeting the lab of Ralph Baric at the University of North Carolina. Baric, a renowned coronavirus researcher, has denied these claims and clarified that his research did not involve creating 'superviruses.' The World Health Organization and other scientists have not ruled out a lab origin for the virus but emphasize the need for further investigation. The disinformation campaign also misrepresents Baric's work and funding, despite his contributions to the development of COVID-19 treatments and vaccines.

A Chinese state-run CCTV report suggested that American athletes at the 2019 Military World Games in Wuhan may have introduced COVID-19 to China, reviving a debunked conspiracy theory. No evidence supports the claim that sick U.S. personnel at the games were responsible for the pandemic. Zhang Dingyu, director of Wuhan Jinyintan Hospital, confirmed that five foreign athletes treated for malaria were not related to COVID-19. The conspiracy theory has been dismissed by Chinese media and health officials, and the origins of COVID-19 remain uncertain. U.S. Army reservist Maatje Benassi, falsely accused of being 'patient zero,' faced online harassment. The Pentagon has no knowledge of U.S. troops falling ill with COVID-19 during the games, and inquiries into the matter continue.

U.S. Navy Admiral John Aquilino, nominated to command U.S. forces in the Indo-Pacific, warned the Senate Armed Services Committee about China's increasing military capabilities and aggressive actions. He emphasized the importance of the U.S. presence in the Indo-Pacific for global peace and prosperity. Aquilino and other military officials expressed concerns over China's potential threat to Taiwan and its rapidly growing nuclear arsenal. The Pentagon seeks transparency from China regarding their intentions, while Indo-Pacific Command officials advocate for the Pacific Deterrence Initiative to strengthen deterrence capabilities.

Shandong Gold Mining Co., Ltd., a Chinese state-owned enterprise, announced on Christmas Eve the successful acquisition of Cardinal Resources Ltd., an Australian company with a significant gold mining project in Ghana. This acquisition came after a nine-month bidding war with Russian gold giant Nordgold and a last-minute challenge from Russian-UAE joint venture Dongshan Investment. The acquisition highlights the strategic competition for valuable mining assets amid global economic instability and the rising price of gold. The Canadian government recently rejected Shandong Gold's proposal to acquire a gold mine in the Canadian Arctic for national security reasons, reflecting the geopolitical tensions and the strategic importance of the Arctic region. The article also discusses China's broader strategic mining interests, including securing resources critical for the next industrial revolution.

The US-China economic competition is described as a defining struggle of the era by Texas Congressman Will Hurd. Experts like Derek Scissors from the American Enterprise Institute view China's economic challenge as a short-term threat, citing aging population, high debt, and policies hindering innovation. The United Nations predicts China will lose 200 million workers and gain 300 million elderly in the next 30 years. China's strategic technology, such as aviation and semiconductors, lags significantly behind the US. Despite this, Rebecca Fannin argues that China's momentum in tech development is difficult to stop. The article also discusses the global anti-China sentiment and suggests that while the US-China competition may not be as difficult as pessimists predict, the next 5-10 years could see intensified actions from China, making it a critical period for the US to implement effective policies.

NATO and the EU have identified China as a strategic challenge, with NATO Secretary General Jens Stoltenberg emphasizing the need for transatlantic unity to address the 'China challenge.' The 'NATO 2030' report and the EU's 'EU-US Agenda for Global Change' both highlight the importance of cooperation between Europe and the US in countering China's growing influence and authoritarian trajectory. While there is consensus on the challenge posed by China, there are divergences within Europe on the best approach to take. French President Emmanuel Macron and German Chancellor Angela Merkel have expressed differing views on European strategic autonomy and the transatlantic alliance. The EU has proposed initiatives such as the Transatlantic Trade and Technology Council (TTTC) to align with the US on technology standards and counter China's economic dominance in high-value industries. The incoming Biden administration's stance on China and the role of Europe in a US-China strategy remains to be seen, but there is optimism about renewed transatlantic cooperation.

U.S. Secretary of State Mike Pompeo announced on Friday visa restrictions targeting individuals associated with the United Front Work Department of the Chinese Communist Party who use or threaten to use coercion. Pompeo accused the department of long-term efforts to spread Marxism-Leninism and exert influence globally, including intimidation and bullying against those opposing Beijing's policies. The specific individuals affected by the restrictions were not listed, and the scale of impacted personnel remains unclear. The move follows a recent travel visa restriction on CCP members and their families and has been criticized by Chinese Foreign Ministry spokesperson Hua Chunying as an escalation of political repression.

The NBA faced backlash after disallowing the phrase “FreeHongKong” on customized jerseys on their official website, which was later attributed to a technical error. Subsequently, the option to customize apparel was disabled due to attempts to publish violent and hateful messages. This incident is part of a broader free-speech controversy involving the NBA's business interests in China, highlighted by the Houston Rockets' general manager's support for Hong Kong protesters last year. U.S. Senator Josh Hawley criticized the NBA for its selective censorship. The NBA's stance on China contrasts with its support for the Black Lives Matter movement in the U.S. The NBA's significant revenue from China poses a conflict between maximizing shareholder value and adhering to U.S. strategic interests. Experts suggest that U.S. corporations should be required to follow national interests, and the U.S. government's hands-off approach to corporate strategy overseas is questioned.