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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

John Thune and Donald Trump had a ‘spirited’ conversation over Senate war powers vote

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McALLEN, Texas — Shortly after five Republican senators broke with Donald Trump and voted Thursday to advance a measure constraining his military options in Venezuela, the president lashed out and called for them to lose their seats.

Before he turned to Truth Social, however, he connected with John Thune and gave him a piece of his mind.

The Senate majority leader acknowledged the “very spirited” conversation with the angry president in an interview Friday after appearing with several Republican senators and candidates along the U.S.-Mexico border to promote last year’s GOP megabill.

“There’s a level of frustration at the White House — and with us, too, on a vote like that,” he said.

A White House spokesperson did not immediately respond to a request for comment.

The war-powers fight is hardly over — the Senate still needs to debate and pass the resolution that was advanced Thursday, and even if the House passes it, which is unlikely, Trump could still veto it. But the surprising procedural vote contributed to a narrative that Trump is losing his grip on congressional Republicans after running roughshod over potential GOP renegades in 2025.

Two of the five senators — Rand Paul of Kentucky and Lisa Murkowski of Alaska — supported a previous effort to rein Trump in on Venezuela. Three others — Susan Collins of Maine, Josh Hawley of Missouri and Todd Young of Indiana — were more surprising.

Thune declined to predict whether he would be able to flip at least two to block the resolution’s passage next week, but he signaled a lobbying effort is underway.

“Obviously we’d love to have some of our colleagues come back around on that issue,” he said. “The constitutional questions, the legal questions, are being more sufficiently answered as people have probed into it.”

But he added that, for his part, no grudges would be held — no matter the outcome.

“The most important vote isn’t the last vote, it’s the next vote,” he said. “At the end of the day, there are going to be a lot more votes coming, and circumstances in which we’re going to have our team united as much as possible and work with the president.”

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House Oversight GOP threatens to hold Clintons in contempt

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The Republican-led House Oversight and Government Reform Committee is threatening to hold former President Bill Clinton and former Secretary of State Hillary Clinton in contempt of Congress if they fail to appear for closed-door depositions next week as part of the panel’s investigation into convicted sex offender Jeffrey Epstein.

The panel previously issued a subpoena for Bill Clinton, who has been tied to Epstein, to appear before congressional investigators Jan. 13; Hillary Clinton has been provided a subpoena to testify Jan. 14. But a committee spokesperson said Friday that, so far, neither had confirmed they would participate.

“They are obligated under the law to appear and we expect them to do so,” the spokesperson said in a statement. “If the Clintons do not appear for their depositions, the House Oversight Committee will initiate contempt of Congress proceedings.”

This seldom-used congressional power can range in implications from a symbolic action to a precursor to forcing jail time.

In examples of the potential serious consequences to contempt of Congress charges, two Trump associates, Steve Bannon and Peter Navarro, were sentenced to prison time for failing to cooperate with subpoenas from the Democratic-led select committee investigating the Jan. 6, 2021 attacks on the Capitol.

The GOP-controlled House voted to hold former Attorney General Merrick Garland in contempt in 2024 over the Justice Department’s decision not to provide the audio of then-President Joe Biden’s interview with former special counsel Robert Hur.

The Biden-era DOJ did not prosecute the case, and that audio was ultimately released by the Trump-era department.

A lawyer for the Clintons did not immediately return a request for comment.

A spokesperson for Bill Clinton has insisted the former president did not know about Epstein’s crimes and that, as of 2019, had not spoken to Epstein in over a decade. In wake of the initial release of materials in the Justice Department’s possession in the Epstein case in which Bill Clinton appeared in multiple photos, the same spokesperson has called for the Trump administration to release all materials in its possession related to the former president.

“We need no such protection,” the statement read.

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Congress

Jim Jordan commits to public hearing for Jack Smith

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House Judiciary Chair Jim Jordan said in an interview Friday he will invite former special counsel Jack Smith to testify in an open hearing as soon as this month in what would be a politically high-stakes event for members of both parties and the White House.

“He’s coming in,” the Ohio Republican said of Smith, who led the federal criminal cases against President Donald Trump.

Smith sat for over eight hours, with breaks, before Judiciary Committee members and staff investigators last month behind closed doors while his legal team has repeatedly requested a public forum for their client to argue his case.

Jordan released a transcript and video record on New Year’s Eve and said Friday he now wants Smith to stand before the public and defend his claims of misconduct against the president.

Smith found Trump guilty of working to circumvent the results of the 2020 election, mishandling classified documents and obstruction of justice, but was forced to drop the charges when Trump won reelection in 2024.

“One of the key takeaways in the transcript is, we said, ‘did you [have] any evidence that President Trump was responsible for the violence that took place at the Capitol?’ He had no evidence of that whatsoever,” Jordan said of the committee’s December interview with Smith.

Jordan said he is eager for Smith to answer that question, and others, before live cameras.

Lanny Breuer, one of Smith’s lawyers and a partner at the firm Covington & Burling, said in a statement that “Jack has been clear for months he is ready and willing to answer questions in a public hearing about his investigations into President Trump’s alleged unlawful efforts to overturn the 2020 election and his mishandling of classified documents.”

Republicans have been going after Smith for years with allegations that he was presiding over a partisan witch hunt with the support of the Biden administration, but they have redoubled their efforts after revelations that Smith’s office secretly obtained phone records for GOP lawmakers in the days around the Jan. 6, 2021, attack on the Capitol.

Smith has maintained he never spoke to Biden or White House staff during his investigation.

Smith defended his work last month to House Judiciary members and staff, but his testimony was hamstrung, in part, by a federal court order that has kept the second volume of his report surrounding the classified documents case under seal. He has maintained he is interested in sharing the results of this investigation, but the Justice Department has interpreted that the order precludes him from discussing details with Congress.

These potential restrictions on his testimony back in December will likely be the same for a public hearing in the near future.

Democrats will likely celebrate the opportunity for Smith to discuss his work publicly, believing he has information that will damage the president.

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