New trade talks have been announced for China and the U.S. later this month. The talks, which will be the first in over two months, will be led by China's Commerce Vice-Minister Wang Shouwen and Davis Malpass, the U.S. Treasury Department's under secretary for international affairs. According to Bloomberg, Wang Shouwen, leader of the Chinese delegation, is a "veteran trade bureaucrat and fluent English speaker who's called America a 'trade bully.'" The choice of low-level officials to conduct the talks has led to low expectations of success among observers. "Treasury is not in charge of trade, and Malpass is not the right person to be talking to," said Derek Scissors, resident scholar at the American Enterprise Institute, according to the South China Morning Post. In reality, the Office of the United States Trade Representative, led by Robert E. Lighthizer, oversees the lists of Chinese goods facing tariffs.

However, previous high level trade negotiations led by Chinese Vice Premier Liu He and U.S. Treasury Secretary Steven Mnuchin failed to yield a productive agreement due to lack of support from President Trump — frustrating China's leaders and reducing optimism about negotiations that are not endorsed by the president. It is considered politically risky for a senior Chinese official to enter talks that could be unexpectedly vetoed by Trump.

In an annual report released late on Thursday, the U.S. Department of Defense analyzed Chinese military capabilities and strategic intentions, estimating the country's defense spending exceeded $190 billion in 2017. The Pentagon report, titled "Military and Security Developments Involving the People's Republic of China 2018," is mandated by Congress and covers "the current and probable future course of military-technological development of the People's Liberation Army and the tenets and probable development of Chinese security strategy and military strategy." In addition to analysis of the improvements in Chinese military capacity, the report highlights opportunities for future engagement and cooperation among the two powerful defense forces.

While the report emphasizes particular flashpoints in this bilateral security relationship, such as Taiwan, it also devotes coverage to China's "Maritime Militia", which it calls a pivotal instrument of Chinese influence in the South China Sea. A civilian reserve force, the ships often protect Chinese maritime claims in the area by supporting operations of the country's Navy and Coast Guard. The report classifies this group and its efforts as part of China's "grey operations," which do not openly agitate other parties in the South China Sea, but nevertheless secure Chinese interests.

Despite speculation among international observers that the report was released to increase tension between China and the U.S., it insists that the U.S. "seeks a constructive and results-oriented relationship with China," an important sentiment as the two nations head into revamped trade talks. As China-US Focus contributor Cui Liru argues, "Neither China nor the U.S. can change the course of this historical process alone. . .[China and the U.S.] will also enjoy limited cooperation on issues with shared interests, which is why security cooperation in the Asia-Pacific is still useful."

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