China’s foreign policy is undergoing a set of tensions that are directly related to the U.S. pivot. These tensions have deep internal roots that are grounded in the new balance of power in the region. Depending on the way China resolves these internal tensions, there are two different paths that the U.S.-China relationship could take: an improved and much less tense one, or another more ominous path that reflects the current state of tensions between the two countries.