The chapter investigates the impact of China’s economic and geostrategic rise and Taiwan’s democratic transition on US paradiplomacy in the 21st century. It evaluates the effectiveness of Beijing’s strategy to limit—or terminate where possible—US states’ and cities’ relations with democratic Taiwan, and Taipei’s countermeasures. It examines such issues as state offices, economic missions, Iowa’s and New York City’s special relationships with China and Irvine’s attempt to establish ties with a Shanghai district. It also investigates Taiwanese efforts to sustain relations with US states and cities, state legislative resolutions on Taiwan, subnational responses to ROC presidential transit visits and arms sales to Taiwan. The chapter argues that during the Bush and Obama presidencies, Chinese economic incentives— primarily in the form of import orders and investments, or promises thereof—stimulated US-China subnational interaction and succeeded in reducing the scope of their relations with Taiwan. However, numerous subnational actors—in part driven by ideational affinity for democratic Taiwan—resisted Beijing’s economic statecraft and refused to accept Taiwan as a PRC province. By 2019, the Trump administration joined forces in countering Beijing’s campaign to suppress Taiwan within US local communities.