The Biden administration is reinforcing guardrails with China, attempting to revive high-level communication channels and crisis management mechanisms.

Washington and Beijing are not on good terms. The U.S. is on high alert, hoping to counter the Chinese government’s coercive efforts to project its economic statecraft by introducing new export controls on semiconductors and related high-end technologies, enacting the CHIPS and Sciences Act aimed at boosting domestic research and manufacturing of semiconductors and leveraging its network of allies and partners to diversify supply chains.

Earlier this month, U.S. President Joe Biden issued an executive order to establish an outbound investment vetting framework that will limit U.S. capital flows that facilitate China’s technological advancements and military modernization in three cutting-edge sectors: semiconductors, quantum computing and artificial intelligence. All of this tells of a fraying of the relationship between the world’s two largest economies, one that could undermine global growth.