Whenever the Chinese People’s Political Consultative Conference (CPPCC) and National People’s Congress (NPC) hold their annual sessions in March, the subject of Chinese military spending features prominently in US media as evidence of the growing “China threat.” This year is no exception.

In sanctioning a singular department of the Chinese military to place pressure on Russia, the U.S. has made a diplomatic error that threatens two of its critical bilateral relationships.

Tensions between the two countries flared on military as well as economic fronts.

Despite Mattis’ harsh criticism of China at the Shangri-La Dialogue, he was careful enough to strike a balance. He said that the U.S. would continue to pursue a constructive results-oriented relationship with China and to cooperate wherever possible. He even recognized the “Indo-Pacific” order which, widely taken as a thinly-veiled strategy against China, has a role for China.

Recently China announced an 8.1% rise in military spending for its 2018 budget. This is the largest increase in several years, but it represents continuity rather than signaling any ominous portent.

Fears of a “China threat” are unfounded.

China consults with the U.S. over again participating in the multinational military exercises this summer.

China’s top newspaper, decrying Washington as a trouble-maker, said on Monday U.S. moves in the South China Sea like last week’s freedom of navigation operation will only cause China to strengthen its deployments in the disputed waterway.

The People’s Liberation Army Air Force had an eventful year in 2017. The takeaway from 2017 is that while current exercises reveal PLAAF limitations and underscore China’s need for a regional alliance, progress has been made and will continue over the coming years.

Despite some friction, the China-U.S. military relationship has held.