December 2014 Trade Bulletin

Here are the highlights of this month’s edition:

  • Bilateral trade: October monthly deficit declines 3.2 percent on the strength of U.S. exports to China, but overall trade deficit on track for another record in 2014.
  • Bilateral policy issues: China pushes FTAAP, meets with Japan, signs South Korea FTA at APEC meetings; U.S.-China summit produces deals on climate, visas, and ITA; G20 members agree to combat tax evasion and money laundering; China-Australia FTA opens services sector and raises threshold for screening of Chinese investments.
  • Policy trends in China’s economy: China announces deposit insurance scheme; “guarantee chains” plague China’s banking sector and risk spreading contagion.
  • Sector spotlight – Illegal Wildlife Products: China makes international pledges to ban trading but poaching and illegal trading still incentivized by rising income levels in China, partial legalization, and skyrocketing prices.