Chinese direct investment into the United States is more than doubling annually, with over $5 billion in 2010 alone. Despite an overall effective U.S. screening policy for inward investment, political interference and fearmongering threaten to divert legitimate and potentially beneficial investment deals. This Special Report was undertaken to help shape an American response to these inbound Chinese direct investment flows in order to maximize the potential benefits for the United States while appropriately addressing national security concerns.

Both Washington and Beijing consider good bilateral relations of vital importance. But their growing strategic rivalry has the potential to evolve into mutual antagonism. The hard reality is that China and the United States will not be able to lessen strategic mistrust unless and until they are prepared to address a central question: is there an array of military deployments and normal operations that will permit China to defend its core interests while allowing America to continue fully to meet its defense responsibilities in the region and protect vital U.S. interests?

What will be the impact of the China issue on the 2012 U.S. Presidential Election? Will China become a Superpower? Deputy Director Douglas Spelman addresses these questions on a May 27, 2011 segment on VOA Chinese. Watch the discussion here! (In Chinese).

In this Washington Post Op-Ed, Director J. Stapleton Roy and Dr. Ken Lieberthal discuss U.S.-China relations and the growing strategic distrust between these two nations.