Tuesday, the Chinese government criticized US President Donald Trump's decision to label Beijing a strategic rival and called on Washington to "abandon a Cold War mentality" and accept China's rise.
President Trump's report Monday hit a series of sore spots for Beijing.
It affirmed ties with Taiwan, the self-ruled island the mainland government claims as its territory, and pledged to "re-energize our alliances" with Southeast Asian governments, some of which have conflicts with China over claims to portions of the South China Sea.
The United States and China share 1 of the world's biggest trading relationships and cooperate in areas from clean energy to public health.
But Beijing sees Washington as an obstacle to its ambitions to be East Asia's dominant power, and strains over Taiwan, trade, technology policy and the South China Sea are growing.
US officials are uneasy about Beijing's rising military spending, already the 2nd-highest behind Washington.
They see President Xi Jinping's "Belt and Road Initiative," a project to build railways and other infrastructure across countries from Asia to Europe and Africa, as part of efforts to erode American influence and nurture a China-centered political structure.
After President Trump signed a law this month that opened the way for US Navy ships to visit Taiwan, a Chinese diplomat quoted by state media said the Mainland would attack the day that happened.
Trump's report doesn't change Washington's official stance but might aggravate tensions if Taiwanese who want formal independence see it as sign of U.S. support and "want to take advantage of it," said Xiong Zhiyong, a US relations expert at China Foreign Affairs University.
The report is another abrupt turn in President Trump's stance toward Beijing, which has veered between blistering criticism on trade and currency and optimism about cooperation on NKorea and other problems.
In April, Trump announced that he was setting aside complaints about trade and currency in hopes of winning Chinese cooperation on NKorea. US officials resumed criticizing Beijing in July.
President Trump switched back to friendly overtures during a visit to Beijing in November. He said the 2 sides could solve most of the world's problems if they cooperated.