Sino Strategies: China's Influence & its Implications for the U.S.

Summary

• China Publishes First-Ever National Security White Paper: China released its first official national security strategy, emphasizing political control, territorial defense, and innovation—core priorities of Xi Jinping’s leadership. The paper signals China’s intent to project global stability amid U.S. trade tensions.
• Implications for the U.S.: While the content holds few surprises, the timing suggests China anticipates prolonged U.S.-China trade friction. U.S. policymakers may need to reinforce global alliances, while businesses and consumers should brace for ongoing supply chain disruptions and inflationary pressure.

China’s Releases National Security Strategy

On May 12, the State Council Information Office released a white paper on Chinese national security, entitled “China’s National Security in the New Era.” While Chinese leaders have always had national security strategies, this is the first time that an official publication on national security has been released by the CCP. 

The white paper emphasizes security in three main areas: political security, territorial & international security, and development & innovation security. These have all been central themes of Xi Jinping’s leadership, demonstrated by the steps he has taken to purge corruption throughout all areas of the CCP, spread China’s influence regionally and internationally, and promote domestic innovation and development in key emerging fields and critical technologies. 

Relevance of Publication Timing

Despite the lack of political novelty in the white paper’s content, the timing of the publication could be noteworthy. The U.S. and China recently announced plans to roll back tariffs for three months, adding another chapter to the ongoing trade war being waged by the U.S. against the rest of the world. Against the backdrop of the Trump Administration’s foreign policy — and the global economic uncertainty resulting from said policy — Beijing may be attempting to project itself as a source of stability to the rest of the world. 

Implications for the U.S.

1. U.S. Policy Implications

As noted above, the contents of China’s National Security white paper are not new or unexpected. For U.S. policymakers, the main takeaway from the publication should be China’s emphasis on creating global stability. Policymakers could seek to reaffirm the U.S.’s global position as a leader by providing increased economic support to its regional APAC partners. Additionally, policymakers could seek to strengthen ties with the U.S.’s western allies, such as Canada and Europe, to support the United States’ global leadership. 

2. U.S. Business Implications

The timing of China’s national security strategy publication could suggest that China does not believe the tariff war with the U.S. is nearing the finish line. This likely indicates continued supply chain disruption and global pricing uncertainty. American companies may need to continue to develop contingency plans to combat the geopolitical impact of this instability. 

3. U.S. Consumer Implications

For U.S. Consumers, China’s national security strategy publication has similar implications to those it has for U.S. businesses, which would very likely mean continued inflation for U.S. consumers.