Highlights of This Month’s Edition
Bilateral Trade: The U.S. trade deficit in goods with China totaled $37.9 billion in November 2018, a 6.9 percent increase over November 2017; in Q3 2018, U.S. services exports to China grew 2.4 percent but the pace of growth for exports and imports has steadily declined since 2016.
Bilateral Policy Issues: In 2018, Chinese FDI to the United States reached $4.8 billion, 83.4 percent drop year-on-year, while Chinese venture capital investments in the United States reached record levels.
Quarterly Review of China’s Economy: China’s economy grew 6.6 percent year-on-year in 2018—the weakest annual pace since 1990—as the effects of China’s deleveraging campaign and trade tensions with the United States start to take a toll; state-owned enterprises enjoyed strong profits in 2018 despite a general economic slowdown, benefiting from the private sector credit crunch and renewed government support; the Chinese Academy of Social Sciences reports China’s declining housing prices slowed toward the end of 2018, though prices in Tier 3 and Tier 4 cities continued to fall.
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.