US-China bilateral trade in goods increased 6.8 percent over the previous quarter during Q3 2023, the first quarterly increase since bilateral trade first dived in Q4 2022.
China Market Intelligence
Those who follow closely will know I have been using a dance metaphor to describe the US-China relationship for the last year. The complexity and pace of this dance accelerated until the much-awaited summit on Wednesday, November 15, near San Francisco between President Biden and President Xi. The summit was followed by a dinner co-hosted by USCBC and the National Committee on US-China Relations (NCUSCR) and featured remarks from President Xi, Commerce Secretary Gina...
In May, USCBC published an article about the troubling number of proposals being discussed in Congress and on the campaign trail calling to revoke China’s Permanent Normal Trade Relations (PNTR) status. This is a position held by the three frontrunners for the Republican presidential nomination in 2024.
After years of conflicting reports on the health of the Belt and Road Initiative (BRI), a recent summit in Beijing indicated that the project is moving in a new direction. On October 17 and 18, China hosted the third Belt and Road Forum for International Cooperation to set the agenda for the next decade.
From October 30 to 31, China convened the twice-a-decade Central Financial Work Conference, an agenda-setting moment for the financial sector. This year’s event took place amid ongoing local government and property sector debt challenges. The last conference took place in 2017 and set the stage for China’s financial deleveraging campaign, which continues today. China’s top officials, including senior financial leaders and all members of the Politburo Standing Committee, were in attendance....
On October 23, 2023, the Commerce Department began accepting full applications on a rolling basis for $39 billion in direct investments in US semiconductor firms, along with $75 billion earmarked for loans and loan guarantees allocated in the CHIPS and Science Act of 2022 (CHIPS Act). Commerce previously accepted optional pre-applications. The funds are intended to boost domestic semiconductor production facilities and create jobs.
China’s third quarter economic data exceeded expectations, growing 4.9 percent year-on-year. According to China’s National Bureau of Statistics, this growth puts China on track to reach its 5 percent annual economic growth target, provided fourth quarter growth reaches at least 4.4 percent. Although parts of the economy showed signs of a recovery, systemic problems persist, which could complicate long term growth prospects.
With the Iowa caucuses less than three months away, the Republican presidential primary race is intensifying, and that includes their respective stances on China. The candidates all share a "tough on China" approach, but their views range from a more hardline policy that would reshape the US-China relationship to the traditional conservative approach that would not completely rupture the relationship.
Congress is currently debating the National Defense Authorization Act (NDAA) for fiscal year 2024. In recent years, the NDAA has been a key vehicle for passing China-related legislation, and this year’s bill will be no different.
On July 21, the National Health Commission (NHC), along with nine other ministries, launched an unprecedented year-long campaign targeting corruption that is long-entrenched in its healthcare sector. China’s leadership is looking to root out collusion between industry experts, hospital staff, and healthcare providers, specifically: