Highlights of this Month’s Edition
· Bilateral trade: The U.S. goods trade deficit with China rose 1.2 percent year-on-year in the first quarter of 2017; in services, the United States the U.S. trade surplus in China for 2016 hit an all-time high of $37.4 billion.
· Bilateral policy issues: At their first summit, Presidents Trump and Xi agree to reform a flagship bilateral dialogue and launch a 100-day plan for addressing economic and trade issues; the U.S. Treasury does not cite China as a currency manipulator and notes China’s intervention to strengthen its currency; the USTR calls China’s barriers to cloud computing incompatible with its WTO commitments, and identifies market access restrictions and domestic support for China’s agricultural sector; the United States challenges China at the WTO over its failure to fully report its subsidies and launches investigations to protect its domestic steel and aluminum industries.
· Quarterly review of China’s economy: China’s economy grew 6.9 percent year-on-year in the first quarter of 2017, fueled primarily by surging industrial activity, property investment, and credit growth.
This hearing will examine the effectiveness of Chinese censorship mechanisms as well the current reliability of censorship circumvention methods and the implications for the United States of China’s attempts to export its information control practices. It will also address China’s soft power strategy to influence media globally, especially its influence over entertainment and journalism, and it will assess the degree of freedom currently allowed to Chinese and foreign reporters in China. Finally, it will address trends in the regulation of cyberspace, the international implications of China’s concept of Internet sovereignty, and China’s computer network operations doctrine, including how Chinese strategists conceptualize deterrence in cyberspace.
The U.S.-China Economic and Security Review Commission invites submission of proposals to provide a one-time unclassified report on China’s development of advanced weapons. Electronic or hard-copy proposals must be received by 5:30PM (EST) on May 30, 2017.
This hearing will discuss Beijing’s perceived security concerns regarding Taiwan, the East China Sea (Senkaku Islands), as well as challenges to China’s maritime claims in the South China Sea. These areas are “regional hotspots” for which the People's Liberation Army is actively preparing for contingencies that could result in armed conflicts between China and U.S. allies, friends, and partners in the Asia Pacific region which could or, in the case of an ally, would result in a diplomatic or military response by the United States. The hearing will take place in Dirksen Senate Office Building, Room 419 at 9:30 AM on Thursday, April 13.
Highlights of This Month’s Edition
• Bilateral trade: In February, U.S. deficit with China reached $23 billion, down 26.6 percent month-on-month and 18.3 percent year-on-year.
• Bilateral policy issues: The United States is poised to maintain China’s status as a nonmarket economy; at Beijing’s request, WTO establishes panel to review the EU’s treatment of China as a nonmarket economy; Chinese outbound investment reached record levels in 2016, but an unprecedented number of Chinese investment transactions were canceled as Chinese authorities adopt measures to control capital outflows; additional measures to restrict outbound FDI will likely lead to an investment decline in 2017; China expands foothold in the U.S. rail market with a new $137.5 million contract to build train cars for Philadelphia’s transit system.
• Policy trends in China’s economy: Work reports from China’s National People’s Congress stress the centrality of the CCP in policymaking, with President Xi at the helm; priority given to clamping down on financial instability; China is planning to establish a trading link connecting bond markets in China and Hong Kong.
• Sector focus – Artificial Intelligence: China is aggressively closing gap with the United States for global leadership in artificial intelligence.
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.