The U.S.-China educational exchange began auspiciously after a 30-year hiatus in 1978 when Chinese leader Deng Xiaoping announced his strategic decision to send 5,000 students and scholars from China each year to further their education. 1 Then-U.S. President Jimmy Carter famously responded, “Tell him to send 100,000.” This was the launch of educational exchange as a core pillar of the U.S.-China relationship. Until the 40th anniversary of the normalization of U.S.-China relations and U.S.-China educational exchange in 2019, there was general agreement that the exchange of students and scholars benefited both countries. There was recognition that the enormous increase in personal interaction and friendships — and knowledge about each other’s society, culture, economy, and government — strengthened understanding, trust, and cooperation. At a time when U.S.-China relations are at its lowest point since the normalization of relations, the benefits of educational exchange are being questioned, if not under assault. Few could have predicted that Chinese students would be weaponized by both sides, caught up in the political and security disputes between the two governments. A trade war, political tensions, concerns about academic espionage and influence operations, rising incidents of anti-Asian hate, and a global pandemic have created a perfect storm to stir up distrust as well as retaliatory measures that restrict student mobility on both sides of the Pacific. After years of fast growth, the number of Chinese students and researchers coming to the U.S. has slowed. China is still the largest source of international students in the U.S., accounting for about one-third of the total, but America’s appeal is weakening. Is this shift toward declining numbers an overdue correction to better protect America against academic espionage and influence operations and prevent China from capitalizing on American know-how to accelerate its own progress? Or is this decline in numbers an unnecessary and damaging hit on American universities’ preeminent position in global higher education and its open science model, leading to loss of U.S. competitiveness and international prestige? This report more broadly, is an attempt to discern the benefits, risks, and challenges of U.S.-China educational exchange and determine how educational exchange can advance the interests of both the U.S. and China going forward.