Highlights of This Month’s Edition
• Bilateral trade: The U.S. trade deficit in goods with China totaled $35.4 billion in November 2017, its highest monthly level in the past two years and a 16.2 percent increase year-on-year.
• Bilateral policy issues: President Trump issues National Security Strategy calling for more assertive policies to combat Chinese influence campaigns and economic coercion; the U.S. government is pursuing multilateral and bilateral approaches to confront China’s market-distorting support for sectors such as steel and aluminum.
• Policy trends in China’s economy: At the Central Economic Work Conference, Chinese leaders maintain last year’s focus on financial risks and supply-side structural reform but place less emphasis on deleveraging; IMF cites China’s credit growth, regulation, and implicit credit guarantees from banks and government actors as top concerns in its most recent financial system stability report.
• Sector focus – Consumer Goods: U.S. consumer goods exports to China experience consistent growth from 2003 to 2016 despite accounting for a small portion of U.S. exports to China; on December 1, the Chinese government cut tariffs on several products, including top U.S. consumer good exports.
The U.S.-China Economic and Security Review Commission invites submission of proposals to provide copyediting and proofreading services to the Commission. Electronic or hard copy proposals must be received by 5:30PM EST on January 22, 2018.
Highlights of This Month’s Edition
• Bilateral trade: In October 2017, U.S. goods trade deficit grew 13.2 percent year-on-year to reach $35.2 billion; year-to-date, the deficit reached $309 billion, up 7 percent year-on-year.
• Bilateral policy issues: President Trump traveled to China for a presidential summit with President Xi, which culminated in a series of business agreements worth about $250 billion, but no resolutions on higher-priority issues; citing wide-spread shortcomings in China’s economic reform, the U.S. Department of Commerce maintains its classification of China as a nonmarket economy, prompting China to launch a new WTO case against the United States.
• Policy trends in China’s economy: China announces plans to relax or eliminate caps on foreign ownership in Chinese financial institutions; NDRC launches third wave of mixed-ownership SOE reforms, seeking to introduce increased private capital in the state sector while simultaneously strengthening government’s role in the economy; Alibaba’s Singles’ Day reaches new sales record of $25.3 billion, eclipsing U.S. Black Friday and Cyber Monday sales.
• Sector focus – Commercial Aviation: U.S. and Chinese aviation regulations will recognize each other’s approvals for aircraft and aviation products, likely increasing U.S. imports of Chinese aircraft and aviation.
The U.S.-China Economic and Security Review Commission submission of proposals to provide a one-time unclassified report on the U.S. role in China’s biotechnology development. Electronic or hard copy proposals must be received by 5:30PM EST on January 10, 2018.
The U.S.-China Economic and Security Review Commission invites submission of proposals to provide a one-time unclassified report on China’s Internet of Things. Electronic or hard copy proposals must be received by 5:30PM EST on January 5, 2018.
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.