Since mid-April, Shanghai’s daily new cases have been dropping sharply and steadily. On May 17, the city’s top health official declared that no new cases had been found outside quarantine zones for three consecutive days, and the city government is now scrambling to get factories humming this month. On May 25, in an unusually large teleconference with one hundred thousand officials from the ministerial level to the county level, Premier Li Keqiang called for concentrated efforts to ensure...
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As China braces for an economic slowdown, the government is weighing the economic costs of its ongoing crackdown on major tech companies with its need to satisfy the growth targets it set for itself earlier this year. In a meeting convened by the Chinese People’s Political Consultative Conference (CPPCC), China’s Vice Premier Liu He indicated the government would ease back on a series of industry crackdowns—a welcome sign for industry leaders and investors, particularly as foreign investors...
As China pursues its carbon peaking and energy security objectives, US companies in China view decarbonization as a top priority issue in their long-term business strategies. In order to identify common challenges and opportunities for decarbonization prospects in China among members, USCBC conducted a survey in late March, garnering input from a diversified sectoral representation of members including manufacturing, services, information and communication technology, energy and environment...
Heading into the summer, the view from Beijing for American businesses continues to be one of uncertainty and mixed signals. Uncertainty abounds regarding the future direction of China’s COVID policy, the economic headwinds China is facing, and if or when the intersection of these two challenges reaches its precipice. Mixed signals are emanating from various points within the Chinese system: central and local government officials pledge support for COVID-ravaged companies and rumors of...
It has been a busy last month in the bilateral relationship, capped off by Secretary Antony Blinken’s speech articulating the administration’s approach to China. The secretary’s remarks yesterday did not contain new announcements, but were a helpful summation of the administration’s strategy and priorities. USCBC’s press statement welcomed the administration’s focus on diplomacy, leveling the playing field with more access to China’s market, and working with US partners on common issues. We...
From May 15 to May 16, leaders from the United States and European Union gathered in Paris for the US-EU Trade and Technology Council (TTC) meeting. Secretary of State Antony Blinken, Commerce Secretary Gina Raimondo, and US Trade Representative Katherine Tai attended the meeting, where they discussed a set of next steps on export controls, investment screening, non-tariff barriers, sanctions, and supply chain vulnerabilities mitigation. The TTC was created last September as a platform to...
On May 6, the National People’s Congress Standing Committee (NPCSC) released its Legislative Plan for 2022. This year’s plan, which includes 39 review items, signals the government’s law-making priorities for the rest of the year. This year, the plan includes numerous actions that the government hopes will stimulate market vitality, contribute to economic security, and strengthen legislation for environmental protection, social welfare, women’s rights, and public health. The full plan is...
A number of major, nonseasonal events impacted trade in Q1. Worldwide trade was impacted by inflation and a weak economic recovery in many countries, as well as by Russia’s ongoing war in Ukraine. These events led to higher commodity prices in addition to labor, logistical, and compliance challenges for shipping companies. Looking specifically at US-China trade, trade flows were impacted by inflation in the United States, decreased consumer demand for imports, and the beginning of the...
China’s COVID-19 outbreak has disrupted international supply chains and reduced expectations for domestic consumption–driven growth. As a result, many investment banks have reduced China’s annual growth rate forecast, which China had set at 5.5 percent during its annual legislative meetings in March. Now, some firms are estimating China’s growth rate to reach anywhere between 3.9 to 5.1 percent. While China’s growth in the first quarter of 2022 reached 4.8 percent, total retail sales of...
On April 27, President Xi Jinping presided over a meeting of the Central Commission for Financial and Economic Affairs (CCFEA), China’s top economic policymaking body under the party. This session emphasized the need for additional infrastructure development. Investment in infrastructure and construction are long-favored tools of China’s economic planners and will be employed in an effort to meet the 5.5 percent annual GDP growth target and boost consumption. Statistics from early 2022...