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4 ways China-US relations could fracture in 2026

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The message from Capitol Hill on both sides of the aisle is clear: Get ready for U.S. relations with China to spiral all over again in the new year.

The one-year trade truce brokered in October between President Donald Trump and Chinese leader Xi Jinping is already looking shaky. And lawmakers are preparing to reup clashes over trade, Taiwan and cyber-intrusions when they return in January.

“It’s like a heavyweight fight, and we’re in that short time period in-between rounds, but both sides need to be preparing for what is next after the truce,” Rep. Greg Stanton (D-Ariz.), a member of the House Select Committee on China, said in an interview.

Blue Light News talked to more than 25 lawmakers, including those on the House Select Committee on China, the House Foreign Affairs Committee’s East Asia subcommittee and the Congressional Executive Commission on China, for their views on the durability of the trade treaty. Both Republicans and Democrats warned of turbulence ahead.

More than 20 of the lawmakers said they doubt Xi will deliver on key pledges the White House said he made in October, including reducing the flow of precursor chemicals to Mexico that cartels process into fentanyl and buying agreed volumes of U.S. agricultural goods.

“China can never be trusted. They’re always looking for an angle,” Sen. Thom Tillis (R-N.C.) said.

That pessimism comes despite an easing in U.S.-China tensions since the Trump-Xi meeting in South Korea. The bruising cycle of tit-for-tat tariffs that briefly hit triple digits earlier this year is currently on pause. Both countries have relaxed export restrictions on essential items (rare earths for the U.S, chip design software for China), while Beijing has committed to “expanding agricultural product trade” in an apparent reference to the suspension of imports of U.S. agricultural products it imposed earlier this year.

This trend may continue, given that Trump is likely to want stability in the U.S.-China relationship ahead of a summit with Xi planned for April in Beijing. “We’re starting to see some movement now on some of their tariff issues and the fentanyl precursor issue,” Sen. Steve Daines (R-Mont.) said.

But a series of issues have been brushed aside in negotiations or left in limbo — a status quo the Trump administration can only maintain for so long. The U.S.-China trade deal on rare earths that Bessent said the two countries would finalize by Thanksgiving remains unsettled. And the White House hasn’t confirmed reporting from earlier this month that Beijing-based ByteDance has finalized the sale of the TikTok social media app ahead of the Jan. 23 deadline for that agreement.

“The idea that we’re in a period of stability with Beijing is simply not accurate,” said Sen. Jeanne Shaheen (D-N.H.), ranking member of the Senate Foreign Relations Committee.

Shaheen has been sounding the alarm on China’s national security threats since she entered the Senate in 2009. But even some lawmakers who have been more open to engagement with Beijing — such as California Democratic Reps. Ro Khanna and Ami Bera — said that they don’t expect the armistice to last.

The White House is more upbeat about the prospects for U.S.-China trade ties.

“President Trump’s close relationship with President Xi is helping ensure that both countries are able to continue building on progress and continue resolving outstanding issues,” the White House said in a statement, adding that the administration “continues to monitor China’s compliance with our trade agreement.” It declined to comment on the TikTok deal.

Still, the lawmakers Blue Light News spoke with described four issues that could derail U.S.-China ties in the New Year:

A soybean spoiler

U.S. soybean farmers’ reliance on the Chinese market gives Beijing a powerful non-tariff trade weapon — and China doesn’t appear to be following through on promises to renew purchases.

The standoff over soybeans started in May, when China halted those purchases, raising the prospect of financial ruin across farming states including Illinois, Iowa, Minnesota, Nebraska and Indiana — key political constituencies for the GOP in the congressional midterm elections next year.

The White House said last month that Xi committed to buying 12 million metric tons of U.S. soybeans in November and December. But so far, Beijing has only purchased a fraction of that agreed total, NBC reported this month.

“What agitates Trump and causes him to react quickly are things that are more domestic and closer to home,” Rep. Jill Tokuda (D-Hawaii) said. China’s foot-dragging on soybean purchases “is the most triggering because it’s hurting American farmers and consumers, so that’s where we could see the most volatility in the relationship,” she said.

That trigger could come on Feb. 28 — the new deadline for that 12 million metric ton purchase, which Treasury Secretary Scott Bessent announced earlier this month.

The Chinese embassy in Washington declined to comment on whether Beijing plans to meet this deadline.

The White House said one of the aspects of the trade deal it is monitoring is soybean purchases through this growing season.

The Taiwan tinderbox

Beijing’s threats to invade Taiwan are another near-term potential flashpoint, even though the U.S. hasn’t prioritized the issue in its national security strategy or talks between Xi and Trump.

China has increased its preparations for a Taiwan invasion this year. In October, the Chinese military debuted a new military barge system that addresses some of the challenges of landing on the island’s beaches by deploying a bridge for cargo ships to unload tanks or trucks directly onto the shore.

“China is tightening the noose around the island,” said Rep. Ro Khanna (D-Calif.), who joined a bipartisan congressional delegation to China in September and returned calling for better communications between the U.S. and Chinese militaries.

Some of the tension around Taiwan is playing out in the wider region, as Beijing pushes to expand its military reach and its influence. Chinese fighter jets locked radar — a prelude to opening fire — on Japanese aircraft earlier this month in the East China Sea.

“There is a real chance that Xi overplays his hand on antagonizing our allies, particularly Australia and Japan,” Rep. Seth Moulton (D-Mass.) said. “There is still a line [China] cannot cross without making this truce impossible to sustain.”

The U.S. has a decades-long policy of “strategic ambiguity” under which it refuses to spell out how the U.S. would respond to Chinese aggression against Taiwan. Trump has also adhered to that policy. “You’ll find out if it happens,” Trump said in an interview with 60 Minutes in November.

More export restrictions on the way

Beijing has eased its export restrictions on rare earths — metallic elements essential to both civilian and military applications — but could reimpose those blocks at any time.

Ten of the 25 lawmakers who spoke to Blue Light News said they suspect Beijing will reimpose those export curbs as a convenient pressure point in the coming months.

“At the center of the crack in the truce is China’s ability to levy export restrictions, especially its chokehold on the global supply of rare earths and other critical minerals,” Rep. André Carson (D-Ind.) said.

Others are worried China will choose to expand its export controls to another product category for which it has market dominance — pharmaceuticals. Beijing supplies 80 percent of the U.S. supply of active pharmaceutical ingredients — the foundations of common drugs to treat everything from high blood pressure to type 2 diabetes.

“Overnight, China could turn off the spigot and many basic pharmaceuticals, including things like aspirin, go away from the supply chain in the United States,” Rep. Nathaniel Moran (R-Texas) said.

China restarted exports of rare earths earlier this month, and its Commerce Ministry pledged “timely approval” of such exports under a new licensing system, state media reported. Beijing has not indicated its intent to restrict the export of pharmaceuticals or their components as a trade weapon. But the U.S.-China Economic and Security Review Commission urged the Food and Drug Administration to reduce U.S. reliance on Chinese sources of pharmaceuticals in its annual report last month.

The Chinese embassy in Washington didn’t respond to a request for comment.

Growing Chinese military muscle

China’s drive to develop a world-class military that can challenge traditional U.S. dominion of the Indo-Pacific could also derail relations between Washington and Beijing in 2026.

China’s expanding navy— which, at more than 200 warships, is now the world’s largest — is helping Beijing show off its power across the region.

The centerpiece of that effort in 2025 has been the addition of a third aircraft carrier, the Fujian, which entered into service last month. The Fujian is two-thirds the size of the USS Gerald R. Ford carrier. But like the Ford, it boasts state-of-the-art electromagnetic catapults to launch J-35 and J-15T fighter jets.

The Trump administration sees that as a threat.

The U.S. aims to insulate allies and partners in the Indo-Pacific from possible Chinese “sustained successful military aggression” powered by Beijing’s “historic military buildup,” Defense Secretary Pete Hegseth said earlier this month at the Reagan National Defense Forum.

Five lawmakers said they see China’s increasingly aggressive regional military footprint as incompatible with U.S. efforts to maintain a stable relationship with Beijing in the months ahead.

“We know the long-term goal of China is really economic and diplomatic and military domination around the world, and they see the United States as an adversary,” Moran said.

Daniel Desrochers contributed to this report.

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Congress

Max Miller subpoenas ex-father-in-law Bernie Moreno

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Rep. Max Miller issued a subpoena to his former father-in-law and fellow Ohio Republican, Sen. Bernie Moreno, in the latest escalation of a long-running family legal drama.

Pamela MacAdams, an attorney for Miller, reported to the Cuyahoga County Domestic Relations Court Monday that three subpoenas were served in Miller’s divorce case, according to court records. A person with knowledge of the subpoenas granted anonymity to comment on them said that two were sent to Moreno and his wife, Bridget.

Their daughter, Emily Moreno, was married to Miller, and the two remain embroiled in a nasty legal battle.

Spokespeople for Miller, Emily Moreno and Bernie Moreno did not immediately return requests for comment. TMZ first reported on the subpoenas.

Miller is seeking reelection in a competitive district, and his campaign has been marred by accusations of domestic abuse against Emily Moreno and their daughter. Miller has repeatedly denied the allegations and chose to remain in the race despite other Republican lawmakers pressuring him to withdraw his campaign.

The House Ethics Committee, which began an inquiry into Miller after Miller asked to be investigated, is currently in a preelection blackout period. During that period, which will continue through the midterms, the Ethics Committee doesn’t take any action against sitting members who could return next Congress.

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Trump declares $1B canceled in ‘pocket rescission’ in another affront to Congress’ funding power

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President Donald Trump informed congressional leaders Friday that he has unilaterally canceled almost $1 billion without Congress’ consent — employing a budget maneuver many lawmakers consider illegal.

In a move that will almost certainly set up an ugly government funding battle after the midterms, Trump has again claimed the power to execute a so-called “pocket rescission” to nix money Congress has already enacted. The money his administration will claw back is for for immigration services, support to foreign countries, education programs, health research efforts and assistance for businesses owned by minorities.

By law, the president is allowed to send Congress a request to rescind federal funding, then withhold that money for 45 days while lawmakers consider whether to approve, reject or ignore it. Trump administration officials also argue they have the power to cancel funding without any congressional action by sending Congress a rescission request with less than 45 days left in the fiscal year. The argument is that the money automatically gets canceled on Sept. 30, when funding lapses at the end of the fiscal year.

Last year, Trump canceled $4.9 billion in foreign aid.

The Senate’s top Republican appropriator, Sen. Susan Collins of Maine, immediately blasted the move as illegal, saying in a statement Friday night that “any effort to rescind appropriated funds without congressional approval is a clear violation of the law.”

“This move shows that OMB intentionally withheld these funds for months to execute this unlawful cancellation of appropriations that were approved on a bipartisan basis and signed into law,” Collins added, pledging to work with other lawmakers “to address these illegal actions.”

Collins and other appropriators have already been on high alert in recent days, pressing multiple agencies about funding officials have yet to spend ahead of the expiration date.

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Gallego grades Democrats on their midterm messaging to men

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Democrats are finally catching on to how to talk to young male voters in the lead-up to the midterms, but the party can still up its game, one battleground senator and potential 2028er said Friday.

Sen. Ruben Gallego (D-Ariz.) has been one of his party’s most outspoken critics on its handling of outreach to young men, who swung right and helped deliver the White House and both chambers of Congress to Republicans in 2024.

The party is now “definitely moving in the right direction,” Gallego said Friday.

“Like back in the day, I was like the only one,” putting out positions on men, Gallego said at a Washington event on young American men. “Now, like, it seems like everyone every week is coming out with a new position, new idea, which is great.”

Gallego has criticized Democrat’s failure to highlight mens’ struggles and their tendency to over-police mens’ ideas. But there are signs the political winds have shifted in his party’s favor.

A new Cygnal poll released with the event of men ages 18-30 who say they’re the most determined to vote revealed Democrats’ generic ballot lead over Republicans at 57%-40%, Blue Light News reported. The poll also said nearly 40 percent of respondents said they feel their lives are off track.

“We need to take the opportunity to invest in that portion of this country, to say that we care about them and actually try to change the trajectory of what’s happening with men in this country,” Gallego said at the symposium.

Still, the path for specific legislation targeting the needs of this demographic faces an incredibly tight calendar this Congress and is uncertain in the political landscape of next year.

A proposal from Gallego and Sen. Roger Marshall (R-Kan.) to establish a men’s health office within the Department of Health and Human Services, for example, has not advanced. Nor has bipartisan legislation from Sen. Bill Cassidy (R-La.), who also spoke at the event, targeting education outcomes, college investment transparency and dyslexic student support.

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