With the opening of the National People's Congress in Beijing on Sunday, Chinese Premier Li Keqiang set a more measured 5% growth target this year, citing the country's need to cultivate better-quality growth long-term amidst "turbulent international environment," "uncertainties" and "hidden risks." In October, Chinese President Xi Jinping embarked on an "intensive" overhaul, breaking with succession norms to secure a third 5-year term as leader of the Communist Party.

These recent developments may not bode well for strengthening U.S.-China ties which have been steadily deteriorating over the past two years. Washington has curbed China's access to technology related to semiconductors and artificial intelligence with export restrictions and sanctions. Allegations of Beijing's consideration to help Russia's war effort in Ukraine and the discovery of a high-altitude balloon over the United States has also hindered diplomatic efforts.