Research

Research
The U.S.-China Economic and Security Review Commission released a report entitled China’s Biotechnology Development: The Role of U.S. and Other Foreign Engagement, prepared for the Commission by Gryphon Scientific and Rhodium Group. The report examines the development of China’s biotechnology industry and the role foreign trade, investment, and other linkages—particularly with the United States—have played in its evolution.
Hearings
This hearing will examine the internal and external challenges the Chinese Communist Party (CCP) faces in its attempts to consolidate power at home and increase its influence abroad. The first panel is designed to explore the implications of President Xi and the CCP’s tightening control over economic and security policy making. The second panel examines China’s domestic challenges, considering China’s economic weakness and financial sector risks, the risks and benefits of China’s state-led economic policies, and the country’s reliance on a number of key foreign technologies. The third panel assesses China’s external challenges, focusing on the People’s Liberation Army’s shortcomings and the limits of Chinese soft, sharp, and hard power.
Trade Bulletin
Quarterly Review of China’s Economy
Research
The Trump Administration cited China as a major reason behind its decision to announce U.S. intentions to withdraw from the 1987 Intermediate-Range Nuclear Forces (INF) Treaty with Russia. China is not a party to the INF Treaty, which has allowed Beijing to rapidly expand its missile arsenal as part of a military strategy designed to counter U.S. and allied military power in Asia. China has consistently refused to accede to the accord and expressed its opposition to U.S. withdrawal, positions that implicitly recognize the advantages Beijing derives from being unconstrained by the treaty’s limits. This report explains the importance of China’s ground-launched missiles to Beijing’s overall military strategy; surveys Chinese reactions to the potential U.S. withdrawal from the INF Treaty; and assesses both the positive and negative implications of U.S. withdrawal for the military balance in Asia, global arms control regime, U.S. relations with Asian allies, and China-Russia ties.
Research
The U.S.-China Economic and Security Review Commission invites submission of proposals to provide a one-time unclassified report on China’s space and counterspace capabilities and activities. Electronic or hard-copy proposals must be submitted by 5:00PM (EST) on February 20, 2019.
Research
The U.S.-China Economic and Security Review Commission invites submission of proposals to provide a one-time unclassified report on China’s smart cities development. Electronic or hard-copy proposals must be submitted by 5:00PM (EST) on February 20, 2019.
Trade Bulletin
In Focus – “Self-reliance” and Chinese import policy
Trade Bulletin
In Focus – Lithium-ion batteries
Research
Highlights of This Month’s Edition:• Bilateral trade: In October 2018, the U.S. goods trade deficit increased 22.3 percent year-on-year to reach a record high of $43.1 billion; declines in export categories targeted by retaliatory tariffs contributed to the sharp deficit increase. • Bilateral policy issues: Escalation in U.S. and Chinese tariffs halted for 90 days, but longstanding U.S. concerns about China’s technology transfer, intellectual property (IP) theft, and innovation policies remain unaddressed; the Chinese government commits to take additional steps to combat illicit fentanyl flows, purchase U.S. agricultural products, but details of the agreement remain unclear; the U.S. government took action against Fujian Jinhua Integrated Circuit, citing IP violations, and trade secret theft from Micron (the largest U.S. memory chip maker), and risks to the U.S. military supply chain; Huawei executive arrested for allegedly violating U.S. sanctions. • Policy trends in China’s economy: Alibaba’s Singles’ Day sales reach another record high, but the pace of growth has slowed, reflecting a weaker Chinese economy and rising competition from other e-commerce platforms and promotional events. • In Focus – Lithium-ion batteries: China has positioned itself to dominate global supply chains and production of lithium-ion batteries, a core technology enabling the adoption of electric vehicles and transportation.
Research
China is the largest market for trafficked wildlife products. Its demand has been an important factor leading to declines in iconic species such as elephants and big cats, as well as in lesser-known species like pangolins. Although China’s legal regime establishes protections for many endangered species, loopholes regarding captive breeding and antitrafficking enforcement create opportunities for the illicit wildlife trade to flourish. Success in combating this trade varies by species: regarding the trade in elephant ivory, for example, a confluence of domestic and international pressure culminated in a U.S.-China joint ivory ban, completed in early 2018. Though indications following the ban appear promising, China’s recent partial reversal of its ban on the use of rhino horn and tiger bone highlights continuing shortcomings in its effort to combat wildlife trafficking.