Highlights of This Month’s Edition
• Bilateral trade: The U.S. trade deficit in goods with China totaled $31.7 billion in August, down 17.6 percent year-on-year; U.S. exports rose to a five-month high.
• Bilateral policy issues: Members of Congress are scrutinizing risks posed by Chinese companies on U.S. exchanges and in federal retirement plans; the Trump Administration is rumored to be assessing similar risks; the U.S. Department of the Treasury published proposed regulations implementing FIRRMA’s expansions of CFIUS’s jurisdiction.
• Policy trends in China’s economy: China’s Corporate Social Credit System, while still in the early stages of development, could pose significant compliance risks for U.S. companies and add to the Chinese government’s geopolitical toolkit; Beijing removes foreign institutional investment quotas and grants first foreign payments license in latest financial opening moves.
• In focus – China’s pork supply: U.S. pork exports to China rose this year despite tariffs in response to falling hog populations devastated by African swine fever; China’s tariff exceptions announced on September 13 included pork and pig feed ingredients; China’s government forecasts pork supplies will continue to be strained into the first half of 2020.
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.