Xi and Trump meet with low expectations

A September summit between Chinese President Xi Jinping and President Trump produced modest agreements on economic talks and artificial intelligence but left fundamental disputes unresolved.

Stalemate shifts competition to courts

With diplomatic progress blocked, both Washington and Beijing are turning to legal mechanisms as instruments of statecraft. American courts will become another arena for strategic competition.

China tests American legal system

Chinese automaker BYD sued the Alliance for American Manufacturing and VICE Media for defamation. Chinese semiconductor company Yangtze Memory Technologies sued Danish firm Strand Consult. Courts dismissed all three cases.

Azerbaijan sues CNN over Iran reporting

Azerbaijan sued CNN in federal court over a June report alleging Israel used Azerbaijani territory for military operations against Iran. Azerbaijan says the allegations were false and created national security threats.

CNN stands by its reporting

CNN has stood by its reporting. Azerbaijan argues the story relied on anonymous sources, ignored government denials, and exposed the country to retaliation after Iran had already attacked Azerbaijan in March.

A novel legal question emerges

Azerbaijan's complaint acknowledges this as a test case. The lawsuit asks whether a sovereign entity can seek damages when false reporting produces concrete security consequences, a question American courts have never clearly answered.

Courts have been skeptical of government suits

American courts have historically been deeply skeptical of U.S. state and federal government agencies using defamation law against domestic critics, particularly the press. Foreign sovereign claims remain an open question.

The precedent Beijing could exploit

If American courts recognize a foreign sovereign's ability to sue U.S. media over alleged national security damage, that precedent becomes available to Beijing, Chinese state-owned enterprises and other state-linked entities.

China could weaponize the courts

China itself could argue that false reporting about its activities caused measurable economic or national security harm. Beijing could turn a political dispute into a legal proceeding without needing to win.

U.S. China policy relies on executive orders

The United States has built its China policy around executive orders. Congress often responds after the fact, leaving courts to interpret complicated rules. This creates legal ambiguities Beijing can exploit.

Sustained competition needs clear law

Sustained competition with China requires durable statutory authorities, clear congressional mandates and predictable judicial standards. Otherwise every new restriction invites litigation and every legal ambiguity becomes leverage.

Protect judicial independence

The answer is not to prevent foreign actors from using American courts or to weaken judicial independence because China might exploit precedents. Those principles make the American system durable.

Granite Act protects journalists

Congress can strengthen safeguards for journalists reporting on foreign activities through the Granite Act and establish a definition of transnational repression that includes lawfare through amendments to the STOP TNR Act.

Codify critical minerals policy

The SAMS Act of twenty twenty-five can codify contentious critical minerals executive orders. The Restoring American Mineral Security Act empowers trade representatives to work with foreign partners to counter Chinese critical minerals initiatives.

COINS Act restricts sensitive investments

The COINS Act of twenty twenty-five, enacted through the twenty twenty-six defense authorization, directs the Treasury Department to restrict certain U.S. investments in countries of concern involving sensitive technologies.

Stalled bills must be passed

These bills are stalled by congressional myopia. At least some of them must be advanced to preempt a predictable deluge of lawfare. Many more worthy bills remain unlisted, and reasonable minds will disagree on priorities.

Beijing will seize the opportunity

If Washington fails to grasp the urgency, Beijing will not fail to seize the opportunity. Congress must act now to prevent China from using American courts as a tool of statecraft.

“If Washington fails to grasp the urgency, Beijing will not fail to seize the opportunity.”