October 2021 Trade Bulletin

Highlights of This Month’s Edition

• Goods trade: In August 2021, the U.S. goods trade deficit with China reached $31.7 billion, its highest monthly level since July 2019. U.S. Trade Representative Katherine Tai said China has failed to meet some of its Phase One Trade Agreement commitments.
• Energy: Surging energy prices in China threaten domestic growth and global supply chains while demonstrating some of the practical difficulties of achieving the country’s energy and emissions goals against ever-growing demand.
• China Bans Crypto Transactions: Chinese regulators escalated their crackdown on cryptocurrencies, declaring all cryptocurrency transactions illegal and severely curtailing any cryptocurrency mining operations.
• Beijing Stock Exchange: General Secretary Xi Jinping announced the establishment of a new bourse in Beijing to help nonstate companies secure capital and offset a worsening external financing environment.
• In Focus - Evergrande: The Evergrande fallout tests Beijing’s propensity for market intervention as it tries to wean the economy off debt-fueled growth without sparking financial turbulence.