February 2015 Trade Bulletin

Highlights of this month’s edition:

• Bilateral trade: U.S. goods deficit with China sets new record, imports outpace exports; U.S. maintains surplus in services despite weaker export growth; transport equipment shipments to China remain strong, farm goods shipments tail off.
• Quarterly review of China’s economy: China registers slowest growth in quarter-century; strong consumption and weak investment suggests some rebalancing; low inflation and “shadow” banking containment give central bank room for easing
• Policy trends in China’s economy: Leadership’s “new normal” principle likely to carry into 2015, emphasizing slower but higher quality growth
• Sector focus—China’s draft Foreign Investment Law: Draft of new foreign investment law introduces “negative list” approach and codifies national treatment, but updated national security review could create additional market access barriers