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...
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Government procurement in China has been an ongoing challenge for American and foreign companies for years. Following an escalation in US-China tensions, China’s focus on domestic substitution in sectors seen as critical to supply chain security has continued to move forward. This is particularly prevalent in sensitive sectors, such as information and communication technology (ICT), healthcare, and advanced technology and equipment.
In early March, Beijing concluded the annual meetings of the 13th National People’s Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC). Both events made it clear that China’s top priority in 2022 is economic stability. In preparation for the annual meetings, central government leadership shuffles remained relatively stable in the first quarter of 2022. Most of the high-level personnel changes were either internal promotions or retirements. In addition, a number...
China’s National People’s Congress (NPC) concluded its annual meeting on Friday. Policymakers at the seven-day session, which used to take place over two weeks before the pandemic, reviewed the government’s performance in 2021 and set the tone for 2022. Premier Li Keqiang closed out the session by presenting the annual Government Work Report. The report, together with additional side meetings during the session, indicates China’s goals in areas including economic development, trade, and the...
The world is a different and more dangerous place than it was two weeks ago when I last shared thoughts with you. The bilateral US-China relationship is made even more difficult as a result of a surge in COVID-19 in China and China’s support of Russia. I want to give you a sense of the volatility ahead and the need to prepare. COVID-19 is surging in all of the countries surrounding China. Hong Kong is a particularly relevant case study. As the percentage of asymptomatic cases is very high,...
Corporate social responsibility (CSR) in China is an evolving practice. Before the early 2000s, it was not common for companies to report extensively on or publicize their CSR initiatives. Now, with China’s new focus on decarbonization and common prosperity, many companies in China see CSR initiatives as both an important part of their business strategies and a societal obligation. Within this new environment, foreign companies are finding it easier to carry out CSR in China as the Chinese...
On January 12, the State Council unveiled its 14th Five-Year Plan to boost China’s digital economy, which aims for the digital economy to reach 10 percent of China’s total GDP by 2025. For reference, the digital economy represented 7.8 percent of GDP in 2020. To achieve the national target, major provincial players, notably Zhejiang, Guangdong, Shenzhen, and Shanghai, have added their unique touches in developing digital economy strategies and rolled out several policies and regulations that...
Free flow of data across borders is an essential part of customer outreach, product maintenance, personnel management, and much more. Chinese regulators are working to articulate both cross-industry and industry-specific guidance for cross-border data transfer, particularly by defining “important data,” which is subject to tighter restrictions. In October 2021, the Cyberspace Administration of China (CAC) issued the “Outbound Data Security Assessment Measures” (Outbound Measures), which...
Senior US government (USG) officials held a virtual call with China-based US-China Business Council member companies last Thursday evening to discuss the Commerce Department’s Bureau of Industry and Security’s (BIS) regulatory responses to the recent Russian aggression in Ukraine.
First, late on Friday, February 11, the administration released its Indo-Pacific Strategy. It casts China in a negative light both in terms of its internal direction and assertion of influence across Asia. The document’s most important line vis-à-vis China states: “Our objective is not to change the PRC but to shape the strategic environment in which it operates, building a balance of influence in the world that is maximally favorable to the United States, our allies and partners, and the...