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 Market Intelligence
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May 4th, 2022
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...
May 4th, 2022
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...
May 4th, 2022
Over the next several months, voters in every state will choose nominees from their respective political parties to run for Senate and House seats in the November general elections. With campaigns already well underway, candidates across the country and political spectrum have spoken extensively on the US-China relationship. While domestic politics are the primary driver for candidates’ popularity among voters, China is among the most prominent foreign policy issues on the campaign trail. In...
April 25th, 2022
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...
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...
