China Market Intelligence

June 9th, 2021
By USCBC Staff

Yesterday, the White House released the findings of its 100-day review of four critical supply chains mandated under a February executive order. The report mentions China hundreds of times, giving significant attention to vulnerabilities posed by China’s dominant position in four supply chains that are critical to the United States: semiconductors, high-capacity batteries, critical minerals and materials, and pharmaceuticals and active pharmaceutical ingredients. The report includes...

June 2nd, 2021
By Allie Klein

For months, several US and European lawmakers, as well as human rights watch groups, have advocated for boycotting the 2022 Winter Olympics in Beijing in some fashion. Supporters of a boycott are motivated by China’s human rights record, particularly when it comes to the treatment of Muslim minorities in Xinjiang and the erosion of democracy in Hong Kong. Though no country has announced a boycott as of yet, calls to use the games as an opportunity to protest China’s behavior are growing...

June 2nd, 2021
By Chris Miller

Late last year, USCBC member companies began voicing concerns about the pricing and availability of ocean freight shipping containers bound for overseas markets from China. According to one shipping company, the market asking price had increased more than fivefold since 2019. In turn, US-based exporters are also having trouble securing containers, as shipping companies are finding it more cost effective to simply ship empty containers back to China. The shortage has posed a significant...

June 2nd, 2021
By Antonio Douglas and Hannah Feldshuh

The Personal Information Protection Law (PIPL) and Data Security Law (DSL) will form two key pillars of China’s data regime, alongside the landmark Cybersecurity Law (CSL) from 2016. Despite previous input from the foreign business community, the revised drafts leave lingering questions regarding key definitions, localization requirements, and restrictions on cross-border data flows. While the two laws cover different types of data, they present similar compliance challenges for...

May 19th, 2021
By Antonio Douglas

The interim final rule (IFR) on Securing the Information and Communications Technology and Services (ICTS) Supply Chain went into effect on March 22, granting broad authority to the secretary of commerce to review virtually any ICT transaction that is deemed to pose a risk to national security. Already, multiple unnamed Chinese companies have been subpoenaed under the IFR’s authority, raising questions about what avenues will be provided to industry to mitigate their exposure to the ICTS...

May 19th, 2021
By Anna Ashton and Allie Klein

To date, the US Defense Department has designated 44 companies a “communist Chinese military company” (CMCC), a label that prohibits US investment in these companies and imposes other restrictions on their US activities. Judicial proceedings, however, are calling into question the legal validity of recent actions taken against CMCCs under the International Emergency Economic Powers Act (IEEPA), a law which grants sweeping emergency powers to the president. If the cases proceed and the courts...

May 19th, 2021
By Alison Schonberg and Banny Wang

Last year, China initiated a three-year action plan to reform state-owned enterprises (SOEs). China has not publicly released the plan, but local plans and high-level reports confirm that China aims to expand the role of SOEs in its economy, at odds with calls for China to do away with unfair subsidies and require its SOEs to compete on the same terms as private and foreign companies. China is also aiming to make its SOEs more competitive by increasing mixed ownership, reducing overcapacity...

May 10th, 2021
By Craig Allen

In a recent conversation, an ambassador of one of America’s closest allies observed that US trade policy, especially toward China, seems “paralyzed.” How is it, the ambassador asked, that there could be so little change from the Trump era? How long should this be expected to continue? I suggested to the ambassador that the Biden administration was not paralyzed, but instead “distracted” with efforts to implement its aggressive domestic policy agenda.

May 5th, 2021
By Alison Schonberg

In spite of US-China political tensions, bilateral trade remains strong. During the first quarter of 2021, US exports to China continued to grow and imports from China returned to 2019 levels. In 2020, US exports to China rose 17 percent, in large part due to China’s successful control of COVID-19, faster than expected economic recovery, and efforts to meet Phase One purchase targets. In a continuation of this trend, US exports increased 58 percent year over year in the first quarter of 2021...

May 5th, 2021
By Allie Klein

On February 23, Senate Majority Leader Chuck Schumer (D-NY) launched a multi-committee effort to create an economic, diplomatic, and military strategy to compete with China. The legislative vehicle for the Senate’s plan is the Endless Frontier Act, a bill that would invest billions in domestic research, development, and manufacturing infrastructure. Lawmakers plan to attach multiple bipartisan China-related bills from several committees to the bill, which would significantly expand its scope...

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