In response to the significant disruptions caused by ongoing operational shutdowns in China, widespread lockdowns, and travel and logistics bottlenecks caused largely by the Shanghai COVID-19 outbreak, the US-China Business Council sent a letter to a cross-section of Chinese government stakeholders on April 19. The letter, which was based on extensive benchmarking with members, covered the major challenges our companies are facing, from policy uncertainty to mobility and logistics challenges...
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April 25th, 2022
April 20th, 2022
Against the backdrop of a potentially serious economic downturn due to COVID-19 city lockdowns, China’s Central Committee and State Council jointly released the Opinions on Accelerating the Construction of a Unified National Market. The opinions, which were released earlier this month, call for a dynamic, efficient, and regulated, domestic market based on fair competition. The plan echoes recent moves by the Chinese government to expand and emphasize control across economic sectors, such as...
April 20th, 2022
On December 23, 2021, President Joe Biden signed into law the Uyghur Forced Labor Prevention Act (UFLPA) to strengthen the prohibition of forced labor in any goods, wares, articles, and merchandise mined, produced, or manufactured wholly or in part in China’s Xinjiang province. While Section 307 of the Tariff Act of 1930 already prohibits imports of products made with forced labor, the UFLPA increases the evidentiary standard for importers through its rebuttable presumption that deems all...
April 20th, 2022
China is currently experiencing its largest COVID-19 outbreak since 2020. While multiple cities across the country are dealing with escalating cases, Shanghai is the current hotbed for new infections, and the city has been virtually shut down for roughly two weeks. The situation remains grim and it is getting harder to tell when widespread lockdowns will end. Public unrest has grown, and supply chain complications are mounting as the restrictive pandemic control measures continue.
April 20th, 2022
The operational and strategic challenges for American companies in China today continue to reach new levels of complexity with each passing day. Immediate issues like the Shanghai COVID lockdowns and the at-times unpredictable policymaking environment in China are weighing on members.
April 6th, 2022
Against the backdrop of the trade war, semiconductor shortages, and recent geopolitical tensions threatening supply chains, China has ramped up domestic investments in technology and other critical industrial sectors in a bid to increase its competitiveness and decouple from foreign supply chains. Events of the last few years, such as the blacklisting of Chinese smartphone maker Huawei and its subsequent retraction from the global market, highlighted the vulnerability of China’s supply...
April 6th, 2022
The Chinese government has rolled out pilot programs of China’s central bank digital currency, or the digital yuan, to over 20 cities across China. However, the Chinese government has yet to indicate when the program could be expanded nationwide—though prior to the digital yuan’s national launch, China likely will need to formulate governing rules for the digital currency.
April 6th, 2022
On March 5, the Chinese government released its 2022 budget (January 2022—December 2022). A guiding indicator for economic priorities in 2022, the budget contains financial support for central government functions, local governments, consumers, and enterprises alike. Government expenditures are projected at RMB 26.71 trillion ($4.21 trillion), an 8.4 percent increase from 2021. Broader tax relief, subsidies, and increased funding for local governments are indicative of efforts to achieve the...
March 31st, 2022
On March 18, President Biden and President Xi met for about two hours in a virtual meeting to discuss a broad range of issues. The official readouts on this meeting requested by President Biden were thin. From what we understand, President Biden pushed President Xi to follow the international consensus on not supporting Russia and not undermining sanctions imposed on Russia by the EU, the United States, the UK, Japan, South Korea, Singapore, Australia, and others. President Xi reportedly...
March 23rd, 2022
The Biden administration is at a crossroads with its China trade policy. China failed to meet its purchase commitments under the Phase One agreement, inflation is at an all-time high, and global supply chains continue to face pressure from the pandemic and the war in Ukraine. Strong political pressure exists on both sides of the aisle in Congress to address these issues and take action to compete with China on the economic and geopolitical fronts. The Biden administration’s actions relating...
