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The sociology of race has rightly underscored the role of the state and various institutions in the creation and perpetuation of systemic racism. Yet, this important body of scholarship primarily focuses on domestic issues. While some studies have examined race and racism from global and transnational perspectives, they often focus on the legacies of colonialism rather than contemporary foreign policy. On the other hand, critical international relations (IR) scholarship has highlighted the role of race in world politics and foreign policy. Despite its insights, this scholarship rarely extends its examination to domestic issues. To advance both race studies and critical international relations (IR) literature, this paper examines U.S. foreign policy through a racial lens, exploring how the marginalization of racial minorities is shaped by the entanglements between racialized foreign policy and domestic issues. In particular, it illustrates the shift from “China threat” to Chinese threat, revealing deep-seated tropes of “yellow peril” and “forever foreigners” attached to Chinese and Asian Americans. With the conflation of national security concerns and racial prejudice, these policies not only take a toll on racial minority groups but also undermine U.S. science and democracy. Overall, this research enriches both race studies and critical IR literature by examining how racial biases underpin the entanglement of foreign and domestic policies, further reinforcing racial injustice. It highlights the multilayered and interconnected nature of racialization across various levels and arenas.