US-China trade in goods decreased 16.7 percent in 2023 to $575 billion after reaching a record high in 2022, according to data released by the US Department of Commerce on February 7. The decrease in bilateral trade reflects a drop in US goods exports to China and a plunge in US goods imports from China that far exceeded decreases in US-worldwide exports and imports.
China Market Intelligence
US ties to China’s biotechnology (biotech) industry are under intense scrutiny on Capitol Hill these days. During last year's FY2024 National Defense Authorization Act (NDAA), Congress passed a provision to potentially prohibit the Department of Defense from entering into contracts with certain Chinese biotech firms. In January, a bipartisan and bicameral group of lawmakers introduced the BIOSECURE Act, a bill designed to prevent US government funding from benefiting specific, pre-designated...
Last November, the State Council issued plans for both the Beijing and Shanghai Free Trade Zones (FTZ), stating further commitments in liberalizing service sectors for foreign investment and facilitating trade. In the plans, Beijing and Shanghai respectively issued policy frameworks to give foreign investors more access in healthcare, finance, and telecommunication services, among others. These plans also echo China’s national plan to improve the business environment in areas of concern for...
Aligning with the 24 Measures, a policy directive from the State Council aimed at attracting foreign investment, China's intellectual property (IP) agencies have undertaken multiple measures aimed at addressing the concerns of foreign IP rights holders. They have released the long-awaited implementation rules for the Patent Law, accelerated timelines for handling IP administrative processes, and exhibited a heightened readiness to impose punitive compensation on malicious IP infringers.
US and Chinese officials are meeting more frequently than in recent years, thanks in large part to the over a dozen working groups and dialogues established or restarted amid a thaw in bilateral relations that began in 2023. These mechanisms were established to address global and bilateral issues relating to economics and trade, military-to-military communications, climate change, counternarcotics, and more.
US-China technology competition is expected to continue unabated in 2024. In high tech, both governments continue to de-risk their economies from the other’s through industrial policy and export controls, which have spilled over into previously uncontrolled sectors, such as cloud computing. These measures have exposed certain companies to the twin pressures of export restrictions and import substitution, which may have significant impacts on company operations.
China's National Bureau of Statistics published the latest economic data for the fourth quarter of 2023 to cap off the year. This information will be crucial to shaping China's economic policies for the upcoming year. While China technically exceeded its GDP growth target, maintaining this growth rate moving forward will be difficult given the many headwinds the economy is facing.
Multiple states in the United States are considering passing legislation to regulate land purchases by Chinese entities in 2024. This is a continuation of a pattern that began last year that reflects broader tensions between the United States and China. Both Republicans and Democrats have expressed concerns about perceived Chinese influence in local political and economic affairs. This trend will continue to galvanize efforts to view property and land as national security.
As 2024 begins, it is essential to understand how dynamics between the United States and China changed over the course of last year. At the start of 2023, China had only just begun unwinding its zero-COVID policies. This sparked a mix of excitement and apprehension; while some expected a rush of visitors and investors, others foresaw a slower restart due to lingering uncertainty.