Research & Analysis

Chinese state planners have long recognized the imperative of transitioning toward a consumption-driven economy for long-term stability. But a deflationary domestic economy, low business and consumer confidence following COVID-19, geopolitical tensions, and supply chain disruptions have stifled spending.

On Tuesday, President Joe Biden and President Xi Jinping held their sixth conversation since Biden took office, building upon discussions from their summit in San Francisco last November. According to the US readout, Biden touched on US export controls, Taiwan, the South China Sea, and Russia, among other issues important to US economic and national security.

China’s leadership is ramping up engagement with foreign business executives as the country works to increase foreign direct investment, which reached a 30-year low in 2023 amid poor sentiment from the business community driven by concerns over weak demand, overcapacity, geopolitical uncertainty, and long-standing regulatory issues.

After six months of anticipation, the Cyberspace Administration of China (CAC) finalized the Provisions on Facilitating and Regulating Cross-Border Data Flow on March 22, representing a pivotal step in the evolution of China’s data governance landscape. The provisions serve as a final rule to the draft rule released in September 2023.

With Representative Mike Gallagher (R-WI) leaving Congress on April 19, House Speaker Mike Johnson (R-LA) was tasked with picking Gallagher’s replacement to chair the Select Committee on the CCP.  Within a couple of days, Johnson chose Representative John Moolenaar (R-MI), a five-term congressman and current member of the select committee.

I recently returned from three weeks in China, where I met with dozens of members, Chinese officials, the US Embassy in Beijing, the US Consulate in Shanghai, and our staff in Beijing and Shanghai. While there, I also attended the China Development Forum, and as many may already be aware, took part in a meeting with President Xi Jinping.

On Monday, House Speaker Mike Johnson (R-LA) announced that Representative John Moolenaar (R-MI) will serve as the next chair of the Select Committee on the CCP. This comes after current chair, Mike Gallagher (R-WI), announced last week that April 19 will be his last day in Congress.

Earlier this month, China held its national Two Sessions, the annual legislative meetings of the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC). Similar to last year, the work report presented at the NPC reiterated China’s commitment to strengthening IP rights protection.

During a Wednesday House Agriculture Committee hearing, lawmakers from both sides of the aisle expressed concern about the potential dangers posed by China acquiring more US farmland. However, not all are on board with the approach some states have taken to restrict these transactions.

On March 5, during the annual Two Sessions conference, China released its government budget report, which lays out how the state intends to spend in 2024. This year’s budget is conservative, with increases to revenue and expenditure in line with previous years.