Since the election, China has flexed its military might in overt and covert ways, highlighting challenges for the US and its allies.

Good morning. China’s trade surplus hits a record ahead of Donald Trump’s return to the White House. UK Chancellor Rachel Reeves returns from Beijing with deals and investments. And Europe’s largest pension fund sells its entire stake in Tesla.

Soon after calls to congratulate the president-elect on his Nov 5 victory, officials began quietly looking for ways to appease him while simultaneously mapping out ways to retaliate if needed