This week, the United States and China continued to take action on commitments made during the leaders’ meeting in October.
US exports to China create jobs in the United States. In fact, exports by US companies to Chinese buyers supported over one million jobs in the United States, according to the US-China Business Council’s 2023 Export Report. But what about imports from China? Do they create or cost American jobs?
In his State of the Union address last night, President Joe Biden highlighted his administration’s approach to industrial policy and competition with China. Early in his speech, he praised the CHIPS and Science Act for spurring increased domestic private-sector investment in semiconductors.
On March 5, Premier Li Qiang opened the National People’s Congress by delivering the annual government work report. The report was released in concert with the National Development and Reform Commission’s (NDRC) annual draft Plan for Economic and Social Development as well as the Ministry of Finance’s (MOF) draft central and local government budgets, which include further details that complement the premier’s work report.
On Wednesday, President Joe Biden issued a long-anticipated data executive order (EO) that directs the Justice Department (DOJ) to establish regulations limiting the transfer of sensitive US personal data to countries of concern, including China.
The Chinese People’s Political Consultative Conference (CPPCC) will open on March 4, followed by the start of the National People’s Congress (NPC) on March 5. These meetings are collectively known as the Two Sessions, China’s most important annual political event where the country’s high-level economic policies for the coming year are laid out in the Government Work Report, which will be delivered by Premier Li Qiang.
Technology self-sufficiency has secured its position as a top economic and political priority for China. At last year’s Central Economic Work Conference (CEWC), the annual economic planning session chaired by President Xi Jinping, promoting industrial innovation was named the first of nine priority areas for 2024.
During a speech at the Munich Security Conference last week, FBI Director Christopher Wray outlined his concerns about the threat posed by China’s hacking program, which Wray described as larger than that of every other major nation combined. The topic later received attention on Capitol Hill, partly in response to President Joe Biden’s re-election campaign launching a new TikTok account.
US-China trade in goods decreased 16.7 percent in 2023 to $575 billion after reaching a record high in 2022, according to data released by the US Department of Commerce on February 7. The decrease in bilateral trade reflects a drop in US goods exports to China and a plunge in US goods imports from China that far exceeded decreases in US-worldwide exports and imports.
US ties to China’s biotechnology industry are under intense scrutiny on Capitol Hill these days. During last year’s FY2024 National Defense Authorization Act (NDAA), Congress passed a provision to potentially prohibit the Department of Defense from entering into contracts with certain Chinese biotech firms.
Last November, the State Council issued plans for both the Beijing and Shanghai Free Trade Zones (FTZ), stating further commitments in liberalizing service sectors for foreign investment and facilitating trade. In the plans, Beijing and Shanghai respectively issued policy frameworks to give foreign investors more access in healthcare, finance, and telecommunication services, among others.
