Chinese tourism to the United States has expanded rapidly over the past ten years. From 2005 to 2015, Chinese tourism spending in the United States has increased eight-fold, and in 2015 contributed $27 billion to the U.S. economy. Today, tourism constitutes a significant part of the United States’ exports to China, making up 57 percent of U.S. service exports to China in 2015 and 12 percent of U.S. exports to China overall. This increase has been driven by rising Chinese incomes which have made China the largest source of international tourists in the world. While many Chinese travel to the United States for traditional tourism, an increasing number of Chinese students travel to the United States for secondary and tertiary education, with China now contributing more students to the United States than any other country. As Chinese tourism has increased, Chinese investment in U.S. hotels and hospitality facilities has grown by a factor of 9 from 2013 to 2015 following looser Chinese rules on outbound investment. This paper examines the rise in Chinese tourism to the United States and Chinese investment in the U.S. hospitality sector and the consequences of these trends for the United States.
Over the last 15 years, Mexican drug organizations have replaced domestic producers as the main manufacturers and distributors of meth in the United States. While Mexican cartels produce the majority (around 90 percent) of meth used in the United States, around 80 percent of precursor chemicals used in Mexican meth come from China. Precursor chemicals are increasingly being shipped from China to Mexico and Central America, where they are manufactured into meth, transported across the southern border of the United States, and brought into southwestern states—Texas, Arizona, and California—before being shipped across the country. Despite international counternarcotic efforts, meth precursor manufacturers in China continue to thrive because the country’s vast chemical and pharmaceutical industries are weakly regulated and poorly monitored. This report examines the extent of China’s illicit chemical production and the effectiveness of U.S. and international efforts to reduce precursor chemical flows.
On July 12, 2016, the arbitral tribunal adjudicating the Philippines’ case against China in the South China Sea ruled overwhelmingly in favor of the Philippines, determining that major elements of China’s claim—including its nine-dash line, recent land reclamation activities, and other activities in Philippine waters—were unlawful. Predictably, China reacted negatively to the ruling, maintaining it was “null and void.” China may take assertive and inflammatory steps to defend its position. The extent to which China abides by the ruling in the long term, and to which the international community supports and seeks to enforce the ruling, will have consequences for the utility of international law as a tool to ensure the peaceful, stable, and lawful use of the seas going forward.
Highlights of This Month’s Edition: • Bilateral trade: U.S. goods deficit with China continued to decelerate in May 2016 as growth in U.S. imports from China slowed. • Bilateral policy issues: At the eighth U.S.-China Strategic and Economic Dialogue, participants failed to achieve any major breakthroughs on fundamental strategic and economic issues, but left with some deliverables on financial sector and environmental cooperation. • Policy trends in China’s economy: Brexit raises economic questions in Beijing, but the reaction in Chinese markets is largely muted; MSCI, the world’s largest index provider, once again delayed the inclusion of China’s domestic shares in its emerging markets benchmark; China takes more steps to internationalize the RMB, meanwhile the PBOC spends $473 billion in foreign reserves to stabilize its value.
Today, the U.S.-China Economic and Security Review Commission released a report prepared for the Commission by Murray Scot Tanner and James Bellacqua at CNA. CNA is a nonprofit research organization that operates the Center for Naval Analyses and the Institute for Public Research. The report, entitled China’s Response to Terrorism, examines the Chinese government’s efforts to combat terrorism by analyzing China’s definition and perception of its terrorist threat, its institutional infrastructure, strategy, and policies for combating terrorism, international counterterrorism cooperation efforts, and the opportunities for, and challenges of, U.S.-China cooperation on countering terrorism.
The U.S.-China Economic and Security Review Commission was created by the United States Congress in October 2000 with the legislative mandate to monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.