In the first quarter of the year, China’s economy expanded by 4.5 percent, exceeding economists’ growth expectations of around 4 percent. The first quarter performance is a step toward reaching China’s 2023 growth target of 5 percent and is indicative of a return from its COVID-stunted economy.
On March 31, China’s Cybersecurity Review Office announced a cybersecurity review (CSR) investigation into US chipmaker Micron, citing supply chain security and cybersecurity risks. This investigation has spurred questions and concerns about the CSR process and whether it will create new compliance difficulties for US companies moving forward.
The Uyghur Forced Labor Prevention Act (UFLPA) has been a game changer for forced labor import bans. Its broad scope, covering anything made “in whole or in part” with input from Xinjiang or entities blacklisted on the UFLPA entity list, has forced companies to rethink supply chain traceability in China and the region.
Since reform and opening began nearly 50 years ago, China’s private sector has played an increasingly important role in the economy, accounting for 60 percent of GDP, 70 percent of innovative capacity, 80 percent of employment, and 90 percent of new jobs.
The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) plans to establish itself as a major influencer in debates on US-China relations on Capitol Hill. The committee has no legislative authority, meaning it will have to rely on other standing committees of jurisdiction to actually move bills.
At the National People’s Congress (NPC) meetings in early March, China unveiled a flurry of reforms to its financial system intended to increase financial stability amid growing debt risks. According to a report from National Institution for Finance and Development, China’s debt-to-GDP ratio rose to 273.2 in 2022, rising nearly 10 points from the previous year.
On March 16, the Central Committee of the Chinese Communist Party (CCP) and the State Council issued the Party and State Institutional Reform Plan. The plan rehashes the government restructuring announced earlier during China’s legislative meetings and creates five new party bodies to more directly oversee government work.
On March 7, during the annual Two Sessions conferences, the Chinese government released its budget report, entitled Report on the Execution of the Central and Local Budgets for 2022 and on the Draft Central and Local Budgets for 2023.
Over the past five years, the short-form video-sharing app TikTok has risen in popularity, garnering scrutiny from the US government along the way.
In recent months, China and Hong Kong have strengthened financial ties in the Greater Bay Area (GBA), a region the Chinese government has been nurturing in its economic planning for many years. The GBA includes the municipalities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing, as well as the special administrative regions of Macao and Hong Kong.
