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Staff Paper
China’s direct financial linkages with the United States have been growing but remain very modest when compared to the two countries’ trade linkages. Beijing has taken steps to gradually open its financial sector to foreign investors, but U.S. investors have displayed little interest since the reforms are happening as Chinese policymakers impose tighter restrictions on foreign currency conversions and outbound capital flows. Economic and financial developments in China can affect U.S. financial markets more substantially through indirect channels, as was evident in the reaction of U.S. equities to China’s stock market crashes in 2015 and 2016. More broadly, the impact of China’s slowing growth and economic reforms on trade, commodities demand, and investor confidence affects global financial markets, which in turn influence U.S. financial markets.
Trade Bulletin
Presidents Trump and Xi agree to reform a flagship bilateral dialogue

Research
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.

Issue Brief
This two page issue brief lays out the U.S. statutory test for determining whether a country is a market economy, and assesses China’s eligibility based on those criteria.

Contracted Research
The report examines Chinese investment in U.S. aviation and related university connections with Chinese entities and assesses the implications of the resulting technology transfer on U.S. national security and aviation industry competitiveness. This report was prepared for the Commission by the RAND Corporation.

Staff Paper
Chinese imports account for a disproportionately high number of product safety recalls in the United States, and China’s position as the largest supplier of U.S. consumer imports challenges U.S. safety regulatory agencies who must apply finite resources to screen out risky products. This staff paper explores unique product safety problems posed by Chinese imports, including legal difficulties associated with holding China-based firms accountable for unsafe products, gaps in China’s safety regulatory structure, and difficulty in identifying Chinese products that have been shipped through third party countries. The report also summarizes U.S. import safety procedures followed by the U.S. Consumer Product Safety Commission and U.S. Food and Drug Administration and the resources available to these agencies to detect unsafe imports.

Staff Paper
Despite areas of tension and distrust between Beijing and Moscow since normalizing relations in 1989, the two countries’ militaries and defense establishments have steadily worked to minimize and overcome these differences and are now experiencing arguably the highest period of cooperation. This staff report analyzes the three main components of military-to-military ties—military exercises, defense industrial cooperation, and high-level military contacts—which show increases in the level and quality of engagement, collectively reflecting closer defense relations. The report also describes the security implications of recent developments in Sino-Russian defense cooperation for the United States and the Asia Pacific.

Research
The U.S.-China Economic and Security Review Commission invites submission of proposals to provide a one-time unclassified report on Chinese entities’ use of the Foreign Sovereign Immunities Act (FSIA). Electronic or hard-copy proposals must be received by NOON (EST) on April 3, 2017.