China should give up the “illusion” of avoiding competition with the United States, and even be prepared for the worst-case scenario of possible military conflict, a Chinese think tank has advised, while also urging Beijing to seek ways to reduce tensions.

The Chongyang Institute for Finance Studies at Renmin University said the war in Ukraine had intensified US worries about and strategy against China, heightening the risk of an “all out” confrontation between the two major powers.

“To respond to US President Joe Biden’s all-out competitive offensive, China should give up its illusions, and make every effort to guard against the possibility of a final showdown of high-intensity military confrontation,” the institute said in a report released on Sunday.