Research & Analysis

On April 16, the National Bureau of Statistics (NBS) released first quarter economic data that paints a mixed picture for China’s 2024 economic growth. While the official NBS views the data as portraying good momentum for China’s economic rebound, many independent analysts noted that seasonal demand increases in January and February around the annual Chinese New Year holiday drove up the headline demand figures, and that March data on property investment, retail sales, and overall industrial output show signs of deceleration.

In early March, China launched a campaign to encourage businesses to upgrade their industrial equipment and consumers to trade-in their outdated goods, which includes automobiles and household appliances. The campaign is intended to address several priorities at once, including boosting consumption, raising business confidence, and improving China’s manufacturing capabilities.

A newly approved bill from the House Ways and Means Committee has reignited the discussion over a popular trade provision utilized by those who sell and ship their goods to the United States, especially by companies in China. The de minimis rule allows products valued under $800 to be expedited at US ports without paying tariffs that would otherwise be applied.

On Wednesday, the Treasury Department and State Department announced nearly 300 new sanctions aimed at entities circumventing US sanctions on Russia. The sanctioned entities include several Chinese firms.

Secretary of State Antony Blinken is wrapping up his three-day visit to China, which began on Wednesday. Earlier today, Blinken met with Chinese President Xi Jinping and Foreign Minister Wang Yi in Beijing.

This report explores the latest comprehensive data available for exports of both US goods (2023) and services (2022) to China as well as for the jobs they support.

On Wednesday, President Joe Biden called on the Office of the United States Trade Representative (USTR) to triple the Section 301 tariff rate on Chinese steel and aluminum to 22.5 percent, up from a current average of 7.5 percent. The increased Section 301 tariffs would be added on top of an import’s regular duty rate and any existing antidumping and countervailing duties.

The Biden administration has characterized its strategy for regulating commerce with China as a “small-yard, high-fence” approach, saying it will promote what it can and protect what it must. Under this framework, access to certain dual use technologies and services is controlled, while other, non-sensitive areas are not restricted, tariffs notwithstanding.

The US-China Commercial Issues Working Group (CIWG), the first commercial bilateral mechanism between the United States and China in seven years, recently concluded its first meeting, which took place in Washington, DC. The mechanism was created last fall, during talks between Commerce Secretary Gina Raimondo and Commerce Minister Wang Wentao, as a platform for the private sector to raise specific issues with both governments.

China has seen several high-level personnel changes at the central and provincial levels over the last few months. On February 7, Wu Qing (吴清), previously the deputy party chief of Shanghai, assumed the role of chairman of the China Securities Regulatory Commission (CSRC), succeeding Yi Huiman (易会满).