Highlights of This Month's Edition:
• Bilateral trade: U.S. goods deficit with China reached $33.6 billion in July 2017, a 10.6 percent increase year-on-year, due to robust growth in U.S. imports.
• Bilateral policy issues: The USTR launches a Section 301 investigation into China’s industrial policies; the United States imposes new secondary sanctions on Chinese companies over their engagement with North Korea.
• Policy trends in China’s economy: To counter declining inbound foreign investment, China’s State Council announces several measures to improve business environment for foreign firms; meanwhile, China’s government continues the crackdown on outbound investment by restricting investment into foreign real estate, hospitality, and entertainment sectors; in its annual review of China’s economy, the IMF warns China’s current credit trajectory is “dangerous.”
• Sector focus – Oil: U.S. oil exports to China rise markedly amid declining oil production in China and production cuts in other oil-exporting countries.
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.