【Epoch Times, December 19, 2025】Today we are going to talk about a significant document, the “2025 Annual Report of the U.S.-China Economic and Security Review Commission.”
How important is this report? In simple terms, it is not an academic paper for scholars to reference, or news leaks hyped up by the media, but a policy blueprint used by the U.S. Congress each year to determine “what exactly is the CCP up to” and “what steps Washington should take next.”
This report, over seven hundred pages, was compiled by 12 commissioners appointed by both parties in the United States, who spent a whole year traveling to Southeast Asia, Silicon Valley, meeting with the military, intelligence community, diplomats, scholars, and even held six hearings listening to testimony from 50 experts. In other words, this is not just someone’s opinion but the official “systematic conclusion” of the United States.
So, what is the conclusion? The United States believes that the economic risks of the CCP are deepening, technological breakthroughs are facing bottlenecks, diplomatic actions are becoming more aggressive, and military construction is accelerating. At the same time, strategic cooperation between Beijing and Russia, Iran, and North Korea is becoming closer and more structured.
For the United States, this is no longer just ordinary competition, but rather an emerging “global challenge.”
Today, let’s walk through the most crucial content of this report to understand the true intentions of the CCP and how the United States views them.
Let’s start with the big picture. The U.S. report looks at present-day China from four perspectives: economy, technology, diplomacy, and military. These four aspects are not separate but interconnected and moving together. Therefore, the U.S. evaluates Beijing’s intentions as a whole based on these four lines.
1. Economy: Pressures are piling up, and the external environment is tightening.
Let’s talk about the economy first. The report states that the Chinese economy is not facing one or two problems; it is facing several significant issues simultaneously.
The real estate crisis remains unsolved, local fiscal pressures have increased, young people cannot find jobs, foreign investment continues to flow out… These problems are all erupting simultaneously and interacting, growing in scale, causing Beijing’s most severe economic challenges.
Externally, the situation is not relaxed either. U.S. tariffs are still in place, export controls are increasing, and supply chains are shifting away from China, making it even harder for Beijing to catch a breath.
The United States assesses that China’s internal pressures are increasing, and the external environment is deteriorating.
2. Technology: Spending more aggressively, but breakthroughs are becoming harder.
Moving on to technology, the report states that the CCP is pushing forward in areas such as AI, quantum, and semiconductors, nearly pouring all national resources into these fields regardless of cost.
However, the problem lies in simultaneous upgrade and development of blocking by the U.S. and allies, especially in critical areas like chips, key equipment, and manufacturing tools. It’s like stepping on the gas pedal while someone keeps placing rocks on the road ahead, making it impossible to increase speed.
The United States’ stance is that while the CCP is still pushing forward, breaking through critical technologies has become more challenging than before.
3. Diplomacy: Moving from caution to actively seeking positions.
Next is diplomacy. The United States has noticed a significant change in China’s diplomatic approach. It is no longer low-key. Wherever there is a vacant spot globally, China plants its flag.
In the Middle East, Africa, Southeast Asia, and Latin America, Beijing’s accelerated expansion of influence is evident. The approaches include investments, infrastructure development, political mediation, media narratives, and technological cooperation, employing various means simultaneously.
The United States perceives this as China’s comprehensive expansion of influence aimed at garnering more global influence.
4. Military: Fostering loyalty and accelerating speed.
Finally, on the military front, the report mentions that Beijing is simultaneously emphasizing military loyalty, strengthening political discipline, and advancing military modernization efforts.
Expansion of the navy, upgrading of the air force equipment, reorganization of missile forces, unmanned aerial systems, cyber warfare capabilities… These areas are all considered crucial. The U.S. interpretation is that Beijing is preparing for potential regional conflicts in the future.
These four lines together present the “China Reality” in 2025 according to the United States. Economic pressures, technological challenges, aggressive diplomacy, and continuous military advancements.
On this foundation, it is necessary to discuss the most sensitive and closely watched part of this report: the formation of a tightening “authoritarian axis” between Beijing and Russia, Iran, and North Korea.
The report states that the relationships between the CCP, Russia, Iran, and North Korea are no longer just occasional cooperation for mutual benefits but are evolving towards a more fixed, deeper, and structured direction.
In simple terms, it has shifted from “doing things together” to “we are all in the same camp.”
Specifically, let’s look at it from three perspectives.
1. From sporadic cooperation to comprehensive system integration.
The report mentions that the interactions between China, Russia, Iran, and North Korea did not suddenly improve but have been laid for decades. However, after the conflict in Ukraine, these relationships have accelerated as if the throttle had been pushed, significantly intensifying ties.
China’s trade volume with Russia has surged, energy cooperation is deepening, financial exchanges are more frequent, and it feels as if starting from cold to full throttle instantly.
Under sanctions pressure, Iran is increasingly reliant on China’s market, technology, and diplomatic shelter; North Korea, on the other hand, receives strategic buffering from Beijing, securing the political space it requires.
The U.S. perspectives see these relationships not as isolated cooperation but intertwining connections: military supplies, technological components, cyber intelligence, financial systems, diplomatic coordination… These interactions are now happening simultaneously, demonstrating significant cohesion.
2. Alignment of Common Goals: Weakening the U.S.-dominated international order.
The United States emphasizes that the goals of these four nations are becoming increasingly aligned. They all aim to promote an international order where “the United States does not dictate terms,” be it in energy, technology standards, regional security, financial systems—they all seek to redirect power their way.
For instance, China frequently aligns with Russia on many issues at the United Nations, essentially supporting Moscow; Iran and China’s cooperation on energy and security has been strengthening, providing Tehran with a new strategic foothold in the Middle East; North Korea, needless to say, has found strategic support from Beijing, allowing it to maintain the political space it needs.
To the United States, the alignment of these four countries signifies an attempt to counter U.S. influence, forming an “anti-Western network.”
3. Security Cooperation Overflow: Not just arms trade but a comprehensive hidden alliance.
What concerns the United States more is that their cooperation has transitioned from “military assistance” to diffuse into more covert arenas such as networks, propaganda, finance.
For example, China provides Russia with sensitive dual-use technologies to support Moscow’s combat capabilities in the Ukrainian conflict. In cyberspace, the activities of hackers and intelligence-sharing among these nations have become more frequent. In media propaganda, their narratives sync up well on some international subjects. In finance, these countries are strengthening their “de-dollarization” efforts, researching pathways to circumvent U.S. sanctions.
The United States views this collaboration not as a temporary mode of operation but increasingly resembles a system with consistent alignment and shared goals.
The report also mentioned China’s reshaping of the regional landscape in Southeast Asia and the Pacific, while advancing in cutting-edge fields such as technology, industry, and space.
Next, we delve deeper into the critical battlegrounds—industry, technology, and space.
The U.S. assessment is crystal clear: the CCP is no longer content with economic competition; they aim to transform these cutting-edge areas into tools for external expansion and dominance.
1. China’s “Innovation Flywheel”: A structure pushed by the national machinery.
The United States uses a metaphor to describe China’s intertwined technological and industrial system—the “interlocking innovation flywheel.” What does this mean? It refers to China’s manufacturing sector, supply chains, research institutions, local governments, subsidy policies… all entwined like gears compelled to run together.
It must be stressed that this flywheel is not a natural creation of the market, but forcefully driven by the Chinese national machinery.
The U.S. concern lies not in its advancement but the structure that enables the CCP to wield industries as tools, politicize them, and potentially employ them as threats to other nations.
In other words, this is the CCP’s “governance tool” rather than an ordinary country’s “economic propulsion.”
2. Biotechnology Raises U.S. Alert.
Biotechnology is one of the most alarming topics in the report.
It is not that the CCP is incredibly advanced in this field, but their aggressive investment in resources without checks and balances or transparency.
Genetic editing, biomanufacturing, vaccine research, biological data… These could potentially become new “strategic levers” for the CCP.
The U.S. apprehension arises from past weaponization of solar panels, electric vehicles, rare earths by China. Now, biotechnology could pave the way for China to wield a new global threat.
3. Space Competition.
The report warns:
– CCP’s military space capabilities are rapidly expanding, including anti-satellite weapons, satellite reconnaissance systems, space situational awareness, electronic interference capabilities.
– The CCP packages its space ambitions under the guise of “military-civil fusion,” ostensibly developing commercial satellites, small rockets, remote sensing technologies. These so-called “commercial space” enterprises all have military underpinnings. Additionally, these entities are accelerating their collaborations overseas, expanding their reach globally.
– Beijing’s goal: to establish a space regime parallel to or even replacing NASA, leading the global space order. In simple terms, it aims to displace the U.S. as the space hegemon.
4. Space Cooperation Becomes a New Penetration Tool for the CCP in Developing Countries.
Many Belt and Road countries are already utilizing CCP’s satellites, ground stations, navigation systems. While appearing to be technological assistance, these facilities possess the potential for military monitoring and strategic control.
The U.S. worries that granting the CCP an advantage in establishing space superiority could affect communication, navigation, and missile warnings in future conflict scenarios. This is not just ordinary competition; it is a life-and-death struggle.
Moving on to the economic impacts that concern the U.S.
The report introduces a sharp keyword: “China Shock 2.0” – an intensified Chinese impact.
What does this mean? It’s not the conventional “cheap manufacturing industry affecting jobs,” but a broad industrial capacity dump affecting the entire supply chain, expanding from the U.S. and Europe to encompass the entire Asia region.
1. “China Shock 2.0”: Larger in Scale, Deeper Impact.
The report states that Chinese manufacturing has entered an era where the production capacity far exceeds domestic demand. What happens when domestic consumption cannot support such a massive production capacity? They push it outward.
Consequently, a massive influx of Chinese products floods global markets, including electric vehicles, solar panels, batteries and energy storage systems, steel and non-ferrous metals, machinery equipment, chemicals, ships…
These products are not cost-efficient due to high productivity levels but are sustained by subsidies, debts, and labor exploitation. Ordinary nations’ industries cannot match this level of “national-level dumping.”
The U.S. describes this situation not as “competition” but as systematic suppression, wherein China pushes industries into tools, politicizes them, and dominates pricing and supply chains.
While previously affecting the U.S. and Europe, the report now indicates that Southeast Asian countries are also overwhelmed by China’s industrial capacity.
Countries like Thailand, Vietnam, Indonesia initially intended to develop domestic brands in electric vehicles, solar energy, but were immediately overshadowed by the scale and cost of Chinese enterprises, making market entry challenging.
2. Weaponization of Supply Chains: The Most Dangerous Card in the CCP’s Hands.
The report identifies several critical areas where the CCP maintains high control: rare earths and critical minerals (specifically neodymium, dysprosium, germanium, gallium), pharmaceutical raw materials; core components manufacturing in electric vehicles and new energy; critical parts of the electronic industry chain.
These fields share a common trait: once blocked, the U.S. and many countries are instantly incapacitated.
Moreover, the CCP has used “export restrictions” multiple times to threaten other nations, including metals and chemical materials required for semiconductors. The U.S. perceives this as the CCP’s most immediate strategic weapon. Without engaging in conflict, a mere export halt instructed by Beijing could instantly impact various U.S. industries.
As a result, the U.S. has actively subsidized chips, minerals, and batteries in recent years, aiming to replace the CCP’s supply chains.
3. New Energy Sectors: CCP’s “Full Chain Control” Sparks Highest Alert.
The report touches on the new energy sector, pointing out that China maintains dominance in solar energy, energy storage systems, rare earths and critical metals, and essential components manufacture. This represents a potential “control capability” for the CCP.
More sensitively, the CCP is expanding its energy layout globally—from solar projects in the Middle East to mineral control in Africa, to lithium resource collaborations in South America.
The U.S. asserts that the CCP’s energy expansion is beyond mere commercial activities but a strategic layout. Even energy networks are classified as “potential risks in network warfare.” As advanced energy systems rely heavily on digitalization and remote control, a nation’s electric networks and energy storage dominated by foreign products could become a “digital loophole,” meaning Beijing, with a flick of a switch, could cripple a country’s energy system.
The report emphasizes the U.S.’ firm commitments to Taiwan and Hong Kong.
To sum it up, the U.S. views the escalating pressure from Beijing towards Taiwan as a comprehensive and persistent escalation. It sees Hong Kong’s shift from “one country, two systems” to “one country, one system” as a complete surrender. Therefore, the U.S. continues to escalate support for Taiwan.
1. Regarding Taiwan: Beijing’s pressure enters a “24/7, high-frequency” stage.
The report notes that Beijing’s pressure on Taiwan has entered a high-frequency and normalized phase. It is no longer occasional exercises but a constant daily stress.
Actions include:
– Gray zone operations: Military aircraft and vessels continuously encroach on Taiwan’s air defense identification zone to exhaust Taiwanese surveillance and air defense systems;
– Military aircraft circling Taiwan and large-scale air-sea drills: Increased frequency and scale, aiming to wear down Taiwan’s reconnaissance and air defense systems;
– Intensified cyber attacks and cognitive warfare: Escalating attacks on Taiwan’s government and critical infrastructure, along with enhanced penetration of public opinion and social media;
– Continuous expansion of united front activities: Increasing infiltration from academia, business sectors, community organizations, all the way to new media platforms, Beijing’s penetration power becomes more evident.
The report indicates that Beijing’s goal is not to trigger a direct conflict but rather to gradually suffocate Taiwan. It aims to erode Taiwan’s morale and determination under long-term pressure, weaken their resolve, and isolate them on the international stage.
Furthermore, the CCP is transforming economic reliance on Taiwan into a political tool for coercion. This “soft-hard” tactic of coercion is seen as the CCP’s core approach in Taiwanese policy in recent years.
2. Taiwan’s Response: Strengthening Across the Board, Hindered by Internal Politics.
Facing Beijing’s long-term pressure, Taiwan cannot remain passive. The report outlines major areas where Taiwan is bolstering its defense:
– Enhancing military training: Includes longer compulsory military service, training closer to real combat, increased joint training with the U.S. military, and more intensive modes of joint exercises.
– Advancing equipment procurement: Continuously purchasing new weapon systems from the U.S. and enhancing independent developments of missiles, drones, and other capabilities.
– Improving technological resilience: Enhancing electric grid, communication, and semiconductor supply chains to prevent complete paralysis in the face of Chinese attacks.
While these efforts are in the right direction, the U.S. also points out a problem: Taiwan’s internal political divisions are substantial, affecting the coherence of long-term defense strategies.
Differences between political parties on military procurement budgets, cross-strait policies, and conscription systems can lead to policy shifts every time there is a change in government.
The U.S. worries that if Beijing suddenly increases pressure and Taiwan is still divided internally, decision-making speed may slow down during a crisis.
3. Hong Kong: CCP’s transition from “partial control” to “full control.”
Moving on to Hong Kong. The CCP continues to advance its hold over the region through legal, law enforcement, electoral systems, media regulations, educational restructuring… gradually transforming Hong Kong from “autonomy” to “comprehensive control.”
The national security law is not the endpoint but an entry point. Afterwards, all institutions lean towards “unified management, unified narrative, unified loyalty.”
The report highlights that Hong Kong is no longer the old Hong Kong but has become part of the CCP’s governance system. In other words, “one country, two systems” is now a thing of the past, and “one country, one system” is the reality.
To the United States, this is not just a change in Hong Kong; it is the latest evidence of the CCP’s expanding governance model overflow.
The report emphasizes that the United States must prepare to enter a “long-term, all-encompassing confrontation period.”
So how is the United States ready to counter the CCP? The report lays out a comprehensive roadmap with several key directions.
1. Supply Chain Security: Breaking free from structural dependence on the CCP.
The U.S.’ primary concern is the previously mentioned “supply chain weaponization.”
Therefore, the first step is to gradually reclaim the production chain from China.
This roadmap includes:
– Establishing “strategic reserves” for critical materials and minerals;
– Bringing core industries like chips, rare earths, and batteries back as much as possible to U.S. soil;
– Collaborating with allies to create a “friendly coast supply chain” to help each other and avoid paralysis by a single CCP hold.
Overall, the U.S. aims to shift from the excessive reliance on China in the past to a “multi-layout, safe and controllable” stance.
2. Technology Investment – Keeping pace ahead of the CCP.
The report calls for significantly increased budgets in Congress, especially in AI, quantum, semiconductor manufacturing, bioeconomy, and dual-use military technology.
These are the most critical technological fronts of the future, areas the U.S. cannot afford to let the CCP surpass them in.
3. Military Presence: Strengthening Forward Outposts in the Indo-Pacific.
The Indo-Pacific region is the most sensitive area of military confrontation between China and the U.S. The report highlights that U.S. military presence in the Indo-Pacific must be reinforced, including more intensive joint exercises, restructuring base layouts, enhancing mobility, closer cooperation with allies like Japan, South Korea, the Philippines, Australia; ensuring military support to Taiwan is in place before a crisis occurs, rather than reactive measures after the fact.
The U.S. believes that stopping the CCP at the forefront is critical to preventing the regional situation from spiraling out of control.
4. Space Strategy: Ensuring U.S. Maintains Dominance.
Reminding that space is now the frontline of future wars, the U.S. must increase satellite numbers; strengthen anti-jamming capabilities to avoid CCP’s electronic warfare crippling satellites; establish comprehensive space surveillance capabilities; encourage commercial space companies to participate more deeply in national security tasks.
The U.S.’ objective is evident: space must lead, and the CCP must not outpace them.
5. Commitment to Taiwan: Strengthening Political,