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.
China has taken a significant step in modernizing and standardizing its tax policy. On January 1, the Value-Added Tax (VAT) Law came into effect after being passed by the National People’s Congress in December 2024. VAT, a consumption tax based on the value added to goods and services at each stage of production and distribution, is China’s largest single source of tax revenue and accounted for 39% of total national revenue in 2025.
Late last year, China’s National People’s Congress passed the most significant revisions to the Foreign Trade Law in two decades. While nothing directly signals more frequent use of these tools against US companies in the short term, China will be equipped to respond decisively if trade negotiations are derailed.
USCBC interviews Sarah Beran — partner at Macro Advisory Partners, former deputy chief of mission at the US Embassy in Beijing, and former senior director for China and Taiwan affairs at the White House National Security Council — on Trump’s anticipated visit to China in April. Topics include the preparatory work required for presidential summits, how to assess their outcomes, and advocacy channels for businesses.
President Donald Trump announced on Wednesday that he had an “excellent” call with Chinese President Xi Jinping and looks forward to visiting China in April. The Treasury Department and the Office of the US Trade Representative are leading trade discussions in preparation for the visit.
According to official government data, China’s economy hit its target of 5% growth in 2025, but only just. Unofficial estimates paint a bleaker picture, with the Rhodium Group concluding that China’s real GDP grew by just 2.5% to 3% in 2025, largely due to persistent deflation and a sharp decline in investment.
In December, China officially opened the Hainan Free Trade Port (FTP). The Belgium-sized Hainan Island is now a separate customs territory, allowing goods to enter the island tariff-free and exempt from value-added and consumption taxes across 74% of tariff categories. Items subsequently shipped to mainland China may also qualify for tariff-free treatment if their local processing in Hainan accounts for at least 30% value-added.
For multinational companies operating stable supply chains, general licenses were initially viewed as a potential step toward greater predictability. Recent practice, however, suggests that while general licenses are now more commonly issued, they are also being implemented in a far more constrained and actively managed manner than their stated regulatory design might imply.
At the World Economic Forum in Davos, President Donald Trump doubled down on his “America First” trade stance, taking some jabs at China in the process. But his top trade negotiators offered a more optimistic tone when addressing the US-China trade relationship.
Congressional engagement on US-China trade issues is set to intensify in 2026 as the midterm elections put the economy, tariffs, and trade policy under the microscope. With control of Congress up for grabs, Democrats and Republicans are especially attuned to the downstream impacts of trade policy, including on consumer prices. Those pressures, paired with bipartisan concern over China’s rapid technological advancement and monopoly on critical minerals, are likely to drive Congress to take a more active role in shaping trade and industrial policy.
Beijing has issued unusually granular implementation guidelines for its AI+ manufacturing program. The plan, rolled out on January 9, defines deliverables, timelines, and an enforcement architecture that will mobilize provinces, state-owned enterprises, and industrial parks to implement AI solutions in China’s manufacturing sector.
