Research & Analysis

Treasury Secretary Scott Bessent hinted on Tuesday that the August 12 deadline for bilateral trade negotiations is likely to be extended following discussions with Chinese counterparts in Stockholm over July 28 to 29. Bessent also noted that he hopes to discuss China’s “glut of manufacturing” and the need to focus on “a consumer economy,” as well as China’s purchases of Russian and Iranian oil.

Companies remain anxious over outstanding export approvals of dual-use items critical to their operations, even while approvals of items like rare earth magnets are picking up. At a recent closed-door meeting, USCBC learned that China’s Ministry of Commerce is exploring new procedures to ease delays.

In the first half of 2025, China achieved GDP growth of 5.2% year-over-year, slightly surpassing expectations. Growth was driven primarily by exports amid a prolonged housing slump, declining industrial demand, and subdued consumer confidence.

USCBC’s annual survey delves into the top challenges, opportunities, and priorities of US companies in China. Here are three themes that dominated the results this year.

Two major US semiconductor suppliers on Tuesday announced that US officials had given them permission to resume exporting advanced H20 and MI308 chips to China, reversing a ban imposed in April. In an interview on Tuesday, Treasury Secretary Scott Bessent suggested that the decision was part of trade talks in Geneva and London.

US-China relations and tariffs are the top concerns of US companies doing business in China. US-China relations continue to top the list of business challenges, and tariffs jumped from eighth to second place amid renewed trade frictions. Companies’ first priority for the bilateral negotiations that kicked off in May is tariff reduction.

President Donald Trump announced on Tuesday that the United States would impose 50% tariffs on copper and tariffs on pharmaceuticals, potentially at a rate of 200%. While Trump clarified on Wednesday that the copper tariffs begin August 1, the timeline for the tariffs on pharmaceuticals is less clear.

The United States and China have signed a yet-to-be-released framework capturing agreements made between chief negotiators in London last month. Trump on June 11 posted on Truth Social that the China trade deal was complete and that full magnets, and any necessary rare earths, will be supplied up front by China.

China unveiled new financial opening measures during the Lujiazui Forum in Shanghai last month, timing several additional policy announcements to coincide with the event. Each summer, the forum convenes top regulators from the People’s Bank of China (PBOC), the China Securities Regulatory Commission (CSRC), and the National Financial Regulation Administration (NFRA) to signal policy directions and preview reform priorities for the financial sector.