This chapter summarizes the international environment China faces. The Sino-U.S. trade war has forced China to enhance the resilience of its regional economy and promote industrial upgrading to counter external shocks. The Belt and Road Initiative has differentially empowered regional development: the eastern region has optimized its industrial structure, the western region has leaped to the forefront of opening-up, the northeastern region has revitalized foreign trade channels, and the central region has built an inland open hub. Technology blockades have compelled high-tech industries to break through “bottleneck” constraints, accelerating the process of independent innovation in core technologies.