Last month, to the surprise and joy of many, China announced a major shift in its COVID-19 strategy, from prevention and control to treatment and openness. China relaxed a slew of restrictions, making it easier to travel to and within China.
Skepticism and competition defined the US-China relationship for much of 2022, and these themes are expected to continue this year. With the tech competition intensifying and a renewed focus on China in the US Congress, this year will likely bring more uncertainty and continued challenges for multinational companies.
From all our staff at USCBC, we thank you for your membership and the confidence you place in our services to you. As we begin our 50th anniversary year, I would like to highlight some of the accomplishments made together with you in 2022 and share some observations on the year ahead.
From December 15 to December 16, senior Chinese leaders convened for the Central Economic Work Conference (CEWC) to discuss key economic goals for the year ahead. At this year’s conference, implementing a new development pattern emerged as a key theme—signaling a focus on revitalizing economic growth.
In March 2022, China set an annual 2022 growth target of 5.5 percent, a goal the economy will almost certainly not meet. Following COVID-19 outbreaks, a declining property sector, slowing consumer confidence, and weakening exports, the median growth forecast sits at 3.3 percent. Looking ahead, China will likely continue to face a similar set of challenges for 2023.
With the Senate staying in Democratic hands, committee leadership will stay relatively intact. However, multiple long-time GOP legislators retired at the end of the 117th Congress, paving the way for new committee leadership on the Republican side.
In October, the Chinese Communist Party announced top party personnel changes and delivered its work report at the 20th Party Congress. The work report lays out priorities and strategic plans for the Chinese government, including facilitating high-quality development and strengthening national security under a more centralized decision-making framework, and the personnel changes have implications for how these priorities will be carried out.
The Cyberspace Administration of China’s (CAC) regulations governing security reviews of cross-border data transfers (CBDTs) came into effect on September 1, 2022, with a six-month grace period that ends on March 1, 2023. In order to support members’ ongoing efforts to understand their obligations and benchmark with peers in the business community, USCBC has compiled the below FAQ.
I’m happy to report that I am safely back in Washington, DC, after a productive five-week trip to China. After 10 days in quarantine and 10 days of work meetings in Shanghai, the final leg of my trip was in Beijing—the political center of China—where we met with key central government stakeholders, academic and think tank experts, and member companies.
