Announcements

11/02/2018
Highlights of This Month’s Edition • Bilateral trade: In Q3 2018, the U.S. goods trade deficit with China grew 12 percent to $115.6 billion on importers rushing orders as tariffs begin to bite; U.S. services exports to China reach a record $20.5 billion. • Bilateral policy issues: The U.S. Department of the Treasury declined to name China a currency manipulator in its October 2018 currency report, but kept China on a monitoring list, citing its significant trade surplus with the United States. • Quarterly review of China’s economy: China’s GDP grew 6.5 percent in Q3 2018, its slowest pace since 2009; the Chinese government is implementing stimulus measures to support short-term economic growth; Chinese households’ falling consumption and rising debt levels prompt worries about China’s rebalancing; local governments resurrect share-buying program to placate jittery stock market investors; state-run media ordered to cloak signs of falling consumer confidence; President Xi conjures images of Deng Xiaoping’s Southern Tour, stresses the need for “self-reliance” in manufacturing and technology.
10/25/2018
The Internet of Things (IoT)—the interconnection of physical and virtual things via information and communication technologies—is being applied to virtually every sector from smart thermostats in households to swarms of autonomous drones in the battlefield. This report, contracted by the USCC and authored by SOS International, outlines China’s state-led approach to IoT development, assesses the implications for the U.S. economy, national security, and the privacy of U.S. data, and makes recommendations for U.S. policymakers. China’s concerted, state-led approach, including ongoing efforts to influence international IoT standards, has put China in a position to credibly compete against the United States and other leaders in the emerging IoT industry. China’s research into IoT security vulnerabilities and its growing civil-military cooperation raise concerns about gaining unauthorized access to IoT devices and sensitive data. In addition, China’s authorized access to the IoT data of U.S. consumers will only grow as Chinese IoT companies leverage their advantages in production and cost to gain market share in the United States based on the terms of use and sweeping Chinese government data access powers.
10/17/2018
The United States maintains close cultural, economic, and security ties with countries in Latin America and the Caribbean (LAC). While the United States remains the largest economic and security partner in LAC, in the last decade China has rapidly deepened its economic, diplomatic, and military engagement to become the region’s largest creditor and second-largest trading partner. China’s efforts in the region are driven by four key objectives: (1) ensuring its access to the region’s abundant natural resources and consumer markets; (2) gaining LAC support for its foreign policies; (3) shaping LAC perceptions and discourse about China; and (4) gaining geopolitical influence in a region geographically close and historically subject to U.S. influence. Closer ties with China may reduce U.S. influence in the region; they can also reinforce the region’s overreliance on highly cyclical exports and create unsustainable debt burdens for some LAC countries, which China could use for political leverage. This report examines China’s objectives in the region, its economic, diplomatic, and military and security engagement in Latin America and the Caribbean, and the implications of its expanding regional presence and influence for the United States.
10/11/2018
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.
09/05/2018
Highlights of This Month’s Edition • Bilateral trade: The U.S.-China goods trade deficit reached $36.8 billion in July 2018, the highest monthly deficit on record. • Bilateral policy issues: President Trump signs FIRRMA into law, expanding CFIUS’s authority to screen foreign investment for national security threats; midlevel U.S. and Chinese financial officials meet to resume trade negotiations but accomplish little. • Policy trends in China’s economy: Beijing is shifting toward monetary stimulus, stepping up efforts to boost bank lending amid cooling economic growth and fears that an intensifying trade conflict with the United States might trigger a sharper slowdown; China introduces new measures to curb risks from peer-to-peer lending in response to rising defaults across the industry; Chinese regulators enhance controls on currency movements, stabilizing the renminbi exchange rate after months of rapid depreciation against the dollar; although the Hong Kong Stock Exchange’s revised listing rules have improved its global competitiveness, the number of Chinese firms listed and the amounts raised are below initial expectations. • Sector Focus – Pork: According to the U.S. Department of Agriculture, U.S. pork exports to China fell by 27 percent in May, then 19 percent in June relative to the previous year; Chinese tariffs on U.S. pork were raised to 62 percent in early July.

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