Research & Analysis

US goods trade with China fell nearly 30% last year to $414.7 billion, the lowest level since 2009. The sharp decline was driven primarily by a collapse in shipments following the imposition of triple-digit tariffs last April, compounded by US and Chinese supply chain de-risking policies and China’s ongoing efforts to expand export markets in the Global South.

When President Donald Trump and President Xi Jinping agreed to a trade truce in Busan late last year, a key ask was for China to improve the flow of rare earth elements (REEs) and derivative product exports to US companies. The topic will almost certainly come up again as the leaders prepare for Trump’s now-delayed state visit to Beijing. Any friction or progress on the REE issue, including movement on China’s now-suspended extraterritorial export controls due to be reimposed this November, will be an important indicator of bilateral tension or stability.

USCBC interviews Bill Russo, Shanghai-based founder and CEO of Automobility Limited, on China’s auto market, including prospects for a domestic “shakeout,” competitive advantages of Chinese automakers, and implications for Western competitors.

China remains an area of bipartisan interest and consensus on Capitol Hill. Lawmakers in the 118th Congress are expected to build off the momentum of the last congress, which introduced over 700 China-related bills, resolutions and amendments spanning a variety of issue areas, including trade and investment, national security, telecommunications, and human rights.

Key details on the agenda and deliverables for President Donald Trump’s trip to China early next month remain unclear as Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer prepare to meet with China’s Vice Premier He Lifeng in Paris over Sunday and Monday.

On March 5, Premier Li Qiang presented the 2026 Government Work Report at the opening of the annual Two Sessions in Beijing, setting a comprehensive slate of economic and development tasks for the year. The report was released alongside a draft outline of the 15th five-year plan (FYP), which will guide economic policy through 2030.

Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will reportedly meet with China’s Vice Premier He Lifeng in Paris next week to discuss preparations for President Donald Trump’s visit to China later this month. The talks signal that summit planning remains on track.

During this year’s Spring Festival, Alibaba launched a three-billion-yuan subsidy campaign to accelerate adoption of its AI chatbot, Qwen. Users could instruct Qwen to order a bubble tea for 0.01 yuan directly within the chat interface. The company has also integrated its major services, including e-commerce, travel, navigation, and grocery shopping, into Qwen, allowing users to complete everyday tasks through a single conversational entry point.

China entered 2026 with clear goals for its digital economy: accelerate capability while tightening oversight. Three recent regulatory updates illustrate this shift. First, the revised Cybersecurity Law (CSL), which took effect on January 1, consolidates cybersecurity and AI under one governance framework, expanding the law’s scope and strengthening penalties.

President Donald Trump is attempting to reshape the global economic order by moving away from traditional free trade agreements toward bilateral Agreements on Reciprocal Trade (ARTs). These agreements, initiated after the imposition of sweeping “Liberation Day” tariffs last year, ostensibly aim to open new markets for US exports, reduce foreign tariffs and non-tariff trade barriers, and spur alignment with US economic and national security measures.