The US Secretary of State Antony Blinken has postponed his visit to China, citing China's launch of a spy balloon over the US as "unacceptable and irresponsible".
The spy balloon has been shot down, the trip remains unscheduled, and two unidentified aircraft have been shot down over Alaska and Canada, raising suspicions about potential spy vessels in North American airspace.
Despite this, analysts suggest that the US and China have strong reasons to manage their disagreements and will eventually find their way back to the negotiating table.
The US and China's strained relationship has been ongoing, but tensions have risen with recent events.
The US has accused China of launching a spy balloon, although China has denied this.
The balloon has reportedly been shot down, but it is unclear who took it down.
Accusations of espionage have also arisen with the shooting down of two unidentified aircraft over Alaska and Canada, with some suggesting they may belong to China, although this is unconfirmed.
The postponement of Blinken's visit to China has further led to questions about the relationship between the two countries.
While Blinken's statements suggest a firm response to China's actions, analysts believe that the two countries have a mutual interest in maintaining a stable relationship.
"Even though they're not talking now, I don't see any fundamental changes in the relationship", says Jean-Pierre Cabestan of Hong Kong Baptist University.
The question remains when, not if, the two countries will find a way to return to negotiations.
Despite evidence of espionage and the postponement of negotiations, both the US and China have strong economic incentives to work together.
However, the relationship is not without its challenges, as the US has accused China of human rights abuses, and China has developed increasingly close ties with Russia.
As the US-China relationship develops, it is likely that negotiations will remain challenging.