The U.S. trade deficit with China continues to grow but at a slower rate. A key reason for this is the boom in U.S. automotive and aerospace shipments to China. As China becomes more affluent and urbanized, ordinary Chinese are driving more cars and traveling more by frequently by air. China’s future demand, however, could be affected by pollution, traffic bottlenecks, and other factors. U.S. companies must also contend with China’s industrial policy, which tilts the playing field toward domestic industry. In the long run, technology transfer and off-shoring could erode U.S. competitiveness and take business away from U.S. plants.
USCC economic issue brief prepared by staff on China's petition last October to join the Trade in Services Agreement, a side agreement in the WTO that entered its sixth round of talks in late February.
Highlights of this month's edition: Strong increase in exports but overall trade slows; transportation equipment continues strong gains; info technology imports from China decline; Kerry signs climate agreements in Beijing; GAO criticizes administration for lax follow-up on China commitments; AmCham releases member survey; China’s movie market is booming but Hollywood lacks access; disappointment about China’s failure to lift film quota; China sets 2014 growth target at 7.5 percent; shoddy export and FDI data causes confusion; NPLs and lending surge add to concerns over debt bubble; RMB decline ignites speculation
Highlights of this month’s edition: 2013 trade deficit with China sets new record; U.S. exports perform well in second half; U.S. challenges China at WTO over noncompliance in GOES case; Lenovo bids for IBM servers and Motorola handsets; China’s real estate boom raises risk of a bubble; China’s property developers begin to invest overseas; China’s economy grows at 7.7 percent in the fourth quarter; leadership and CBRC unveil new leading groups to engineer reform.
Today the U.S.-China Economic and Security Review Commission released a Staff Research Backgrounder on "China's New Income Inequality Reform Plan and Implications for Rebalancing." The backgrounder examines China's already large and steadily growing gap in income and the Chinese Communist Party's efforts to address it. The report was written by Nargiza Salidjanova, USCC Economic and Trade Policy Analyst.
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.