Research & Analysis

President-elect Donald Trump led the charge on Wednesday to convince House Republicans to abandon a bipartisan compromise bill to fund the government until March, increasing the chances of a government shutdown beginning today. The continuing resolution (CR), which was released on Tuesday, included multiple China-related provisions, including an outbound investment review proposal.

Chinese tech startups may have found a new lifeline as venture capital investment in the country declines. Driven by waning investor confidence and mounting geopolitical tensions, nearly 40 percent of domestic and foreign venture capital funds have scaled back their China operations in the first nine months of 2024, resulting in a $5 billion investment decrease compared with 2023.

The global automotive industry is at a crossroads. Chinese automakers have captured over two-thirds of China’s auto market and expanded abroad rapidly, helping the country become the world’s number one producer and exporter of vehicles. Chinese automotive suppliers, most notably electric vehicle (EV) battery makers, are establishing factories overseas and licensing their technology to foreign automakers.

China has seen several high-level personnel changes at the central and provincial levels in recent months. A partner of USCBC, Wang Jiangping (王江平), stepped down as vice minister of the Ministry of Industry and Information Technology (MIIT) last month upon reaching retirement age.

The United States on December 2 released the third iteration of controls on the export of advanced chips and chipmaking equipment to China, as well as outright bans on exports to certain Chinese companies. These new US rules are technically challenging and will require significant overhauls to semiconductor companies’ compliance architectures.

Senior Chinese policymakers on Thursday concluded the annual Central Economic Work Conference, where leaders met over two days to set the economic agenda for the coming year. The conference took place as China continues to grapple with a severe property market crisis, mounting local government debt, and weak domestic demand.

Growth in bilateral trade occurred amid a broader 7.7 percent increase in US-worldwide trade. Several key import and export categories experienced significant growth, including US small electrical appliance imports and aerospace exports.

The Commerce Department’s Bureau of Industry and Security (BIS) on Thursday released a comprehensive package of final rules designed to further impair China’s ability to produce advanced semiconductors.

President-elect Donald Trump has wasted little time in announcing a series of nominations for key positions in his administration as he prepares for his second term. Many, if not all, of Trump’s nominees hold hardline views on China.

President-elect Donald Trump and many other Republicans have made clear their intention to revoke China’s permanent normal trade relations (PNTR) status with the United States, a power that resides with Congress. Some, however, see the need for even higher tariffs than what would result from a so-called clean PNTR repeal, which has led to growing calls for the United States to both revoke China’s status and create a new tariff column entirely—column 3—designed specifically for imports from China.