The report analyzes nearly two decades of data compiled by the Bureau of Economic Analysis to profile U.S. commercial activity in China. It finds that the vast expansion of U.S. multinational enterprise (MNE) activity in China may challenge U.S. industrial competitiveness and long-term tech leadership. Since 2000, U.S. companies’ operations in China have been among the fastest growing globally for all foreign subsidiaries, with total U.S. commercial assets in China surging 15-fold. The rapid evolution of U.S. business operations in China away from manufacturing and toward higher value-added activity such as research and development, often coerced by Beijing, increases the risk that U.S. firms are unwittingly enabling China to achieve its industrial policy objectives.