China Market Intelligence

US-China bilateral trade in goods has decreased significantly in 2023 after reaching a record high in 2022. This trend is in large part due to economic challenges in China that have impacted Chinese demand for US goods, as well as supply chain diversification, which has resulted in fewer US imports from China in favor of more imports from other countries.

China’s protection and enforcement of intellectual property (IP) rights remains a key challenge for both US companies and a key issue for the US government. The Office of the US Trade Representative said in its  2023 Special 301 Report that the slow pace of China’s IP reform is a “serious concern.”

Over the last several months, both the United States and China have issued plans to support standards-setting activities in emerging sectors in an attempt to ensure first-mover advantages over one another and their global competitors.

On April 26, the Standing Committee of the National People’s Congress voted to adopt revised amendments to China’s Anti-Espionage Law (EN/CN). The amendments go into effect on July 1 and mark the first changes to the law since it was promulgated in 2014.

In an April 24 speech, Representative Ro Khanna (D-CA), a member of the new House Select Committee on the CCP, outlined his vision for the future of the US-China relationship.

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.