U.S. Vice President Vance stated that the United States recognises China as a competitor while also expressing a desire to build a positive relationship with the country.

US position on China relations

Vance's remarks reflect a dual-track stance, acknowledging competitive dynamics between the two nations while leaving room for constructive engagement. The statement underscores the complexity of the bilateral relationship, which spans trade, technology, and geopolitical interests.

The acknowledgment of China as a competitor signals that the U.S. maintains a clear-eyed assessment of its strategic position, even as it signals openness to dialogue and cooperation where interests may align.

Chinese Foreign Minister Wang Yi urged Washington and Beijing to "remove disruptions" as President Donald Trump prepares to host Chinese President Xi Jinping in Washington next month.

Diplomatic Push for Stability

Wang made the appeal Wednesday during a meeting with U.S. Ambassador to China David Perdue in Beijing. He acknowledged that relations between the world’s two largest economies "still face various risks and challenges."

According to China’s Foreign Ministry readout, Wang stated the two sides should implement common understandings reached by the heads of state, focus on a positive agenda, and properly manage differences. He called for "steady, healthy and sustainable development" of ties.

Perdue said both sides wanted to strengthen communication, advance cooperation and prepare for the next round of high-level interactions.

Xi is expected to visit the White House on Sept. 24. Trump invited him during his May state visit to Beijing, when the leaders created bilateral trade and investment boards but left major disagreements over Taiwan and trade unresolved.

Trade and AI Talks Test Détente

The countries are also expected to hold their first formal AI talks under the Trump administration in September. Discussions are expected to focus on risks posed by increasingly powerful frontier models.

Fresh disputes are testing that détente. Trump is considering another 7.5% tariff on Chinese goods over alleged industrial overcapacity ahead of Xi’s visit.

Iran Sanctions and Cyber Tensions Mount

Washington’s expanding Iran sanctions create another fault line. The Treasury Department this week launched Operation Economic Outcast, targeting nearly 60 Iran-linked individuals, entities and vessels, including networks operating through China and Hong Kong.

Chinese Foreign Ministry spokesperson Lin Jian responded that "Economic warfare and maximum pressure provide no solution," warning they would "fuel tensions and lead to risk spillover."

Cybersecurity tensions have risen as well. The Justice Department and FBI this week disrupted a China-linked hacking operation that targeted NASA, the Federal Reserve, Energy Department and U.S. Senate networks. The DOJ identified the group as PRC state-sponsored.