Highlights of This Month’s Edition: • Bilateral trade: Weaker imports cause the U.S. goods deficit with China to fall 5.4 percent year-on-year in the first quarter; Chinese services exports to the United States reach an all-time high of $4.24 billion, driven largely by increases in U.S. tourism spending. • Bilateral policy issues: The Office of the U.S. Trade Representative labels China’s Internet censorship a trade barrier; China ends “Demonstration Bases” export subsidy program after U.S. challenge at the WTO; multilateral effort to rein in overcapacity fails, even as Chinese steel production hits new high; U.S. Steel accuses China of IP theft. • Quarterly review of China’s economy: In the first quarter of 2016, the Chinese government again used investment to bolster economic growth, raising questions about the recovery’s sustainability. • Sector focus – Pork: A pig shortage in China has led to a dramatic increase in pork prices and sent consumers clamoring for imports, but U.S. exporters continue to face market access restrictions.
The U.S.-China Economic and Security Review Commission was created by the United States Congress in October 2000 with the legislative mandate to monitor, investigate, and submit to Congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China, and to provide recommendations, where appropriate, to Congress for legislative and administrative action.