Dear Focus Reader,

This week, a partial federal government shutdown in Washington paused many government operations and furloughed hundreds of thousands of federal workers. While analysts suggested the immediate impact on China may be limited, the shutdown could slow ongoing U.S.-China economic and trade discussions ahead of the mid-November deadline for additional U.S. tariffs to be imposed.

Ahead of the shutdown, U.S. President Donald Trump and Secretary of Defense Pete Hegseth addressed military and strategic priorities in a rare, high-profile gathering of nearly 800 U.S. generals, admirals, and senior enlisted leaders. Hegseth stressed that the military must "operate in a more efficient, effective manner," highlighting ongoing debates over modernization priorities and the structure of U.S. forces to respond to global threats. Meanwhile, President Trump emphasized loyalty among Pentagon officials, outlined new domestic and international priorities, and signaled a continued strategic focus on countering China and other global competitors.

In regional security, the AUKUS agreement survived a Pentagon review, confirming that the U.S. will proceed with submarine sales to Australia and reinforcing commitments to strategic partnerships in the Indo-Pacific. At the same time, European and U.S. officials continued efforts to find common ground with Beijing despite broader policy differences, underscoring the ongoing complexity of international coordination on economic, security, and diplomatic issues.

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