On February 4, the United States shot down a large high-altitude Chinese “surveillance” balloon that entered its airspace on January 28. 

The incident will impede efforts to stabilize bilateral relations amid the intensifying rivalry in the Indo-Pacific region and between the two superpowers. The potential for an armed escalation continues to remain limited in the short-to-medium term despite the calling off of high-level diplomatic engagement.

Check out our latest report with a detailed analysis of how the US-China ties will potentially evolve due to the incident.