Highlights of This Month’s Edition
• Bilateral trade: In August 2018, the U.S. goods deficit with China hit $38.6 billion, an increase of 10.5 percent year-on-year, and the highest monthly deficit with China on record.
• Bilateral policy issues: On September 24, the second and most recent round of tariffs went into effect: the United States imposed a 10 percent tariff on $200 billion of U.S. imports from China; Beijing responded by imposing a 5 to 10 percent tariff on $60 billion of U.S. exports to China, releasing a white paper criticizing the Trump Administration; tariffs increase manufacturing costs and hurt U.S. farmers and automakers, but niche manufacturers and metal producers reap benefits, labor groups offer qualified support.
• Policy trends in China’s economy: At the 2018 Forum on China-Africa Cooperation, an official forum between China and its 53 diplomatic partners in Africa, Beijing pledged $60 billion in financing commitments.
• In Focus – U.S. Supply Chain Risks from China: Increased reliance on China-based manufacturing and strategic materials worsens U.S. vulnerabilities to a supply disruption and Chinese government tampering of products and services.
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.