China Market Intelligence
US-China bilateral trade in goods saw a sharp contraction during the first half of 2023 after reaching a record high the year prior. The contraction in bilateral trade occurred amid a broader, albeit more modest, contraction in US-worldwide trade in goods, stemming from global and domestic economic woes that have led the WTO, IMF, and World Bank to forecast slower growth for global trade in 2023.
In 2020, the Chinese government sought to rein in real estate developers’ high debt levels with the introduction of the “three red lines,” which imposed borrowing limits on real estate firms. While the move was meant to stabilize the industry, developers and local governments alike have been under financial pressure as developers face declining property sales and local governments see decreasing revenue from land sales.
On August 9, the Biden administration released its long-expected executive order (EO) on outbound investment, along with an Advance Notice of Proposed Rulemaking (ANPRM) from the Treasury Department. While the EO is narrower than other proposals seen in recent years, it still represents a significant change in US policy.
In recent months, China has seen significant high-level personnel changes at both central and provincial levels. On July 28, Liu Liehong (刘烈宏), the former chair of state-owned telecom firm China Unicom, was appointed as the inaugural chief of the newly established National Data Bureau.
On March 16, the CCP Central Committee and the State Council released a reform plan for Party and state institutions as part of the annual Two Sessions conference. The plan calls for the creation of a new data regulator, which this article refers to as the National Data Bureau, to consolidate the management of China’s burgeoning data markets.
Following the release of China’s weak second quarter economic data, the government unleashed a slew of measures and statements in support of spurring economic growth, though falling short of issuing a large-scale stimulus package. China continues to face weakening domestic demand, waning private sector confidence, rising youth unemployment, a beleaguered property sector, and mounting local government debt.