The U.S.-China Economic and Security Review Commission has released the 2016 Annual Report to Congress. This year’s report covers Chinese overcapacity, investment in the United States, state-owned enterprise reform, China’s military buildup, espionage threats to the United States, and China’s relationship with the world (including a special focus on Hong Kong, Taiwan, South Asia, and North Korea), among other topics. Additionally, this year’s report has a new chapter on China’s response to the United States’ Rebalance to Asia. The congressionally-mandated report features 20 recommendations for lawmakers. Commissioners will be in attendance to present their analysis and answer any questions.
Highlights of this Month’s Edition" • Bilateral trade: In the third quarter of 2016, the U.S. trade deficit declined year-on-year due to weakened imports; in the second quarter of 2016 U.S. service exports to China reach $10.8 billion, an 8 percent increase year-on-year. • Bilateral policy issues: China drops discriminatory aviation tax break; WTO rules against U.S. zeroing antidumping methodology; the United States advances WTO raw materials case against China. • Quarterly review of China’s economy: China’s GDP growth hit 6.7 percent for the third straight quarter; strong public investment, largely in real estate and infrastructure, has counterbalanced lower private sector investment and driven economic growth, but questions remain regarding the health of the underlying economy; RMB posts weakest rate against the dollar since 2010. • Policy trends in China’s economy: The CCP designates Xi Jinping as its “core” leader at the Sixth Plenum.
Washington, DC - Today, the U.S.-China Economic and Security Review Commission released a report, entitled China’s Industrial and Military Robotics Development, which was prepared at the Commission’s request by Defense Group, Inc.. The report examines the growth of China’s robotics industries and its development of unmanned industrial, service, and military systems, such as drones and driverless cars. The report assesses the economic and national security implications of these trends for the United States.
The report examines the growth of China’s robotics industries and its development of unmanned industrial, service, and military systems, such as drones and driverless cars. The report assesses the economic and national security implications of these trends for the United States.
Testimony of the Honorable Dennis C. Shea, Chairman, U.S.-China Economic and Security Review Commission, before the House Space, Science, and Technology Committee, Subcommittee on Space on September 27, 2016.
Highlights of this Month’s Edition: • Bilateral trade: U.S. deficit with China widens in August 2016 on higher imports, but cumulative deficit down year-to-date. • Bilateral policy issues: Under China’s presidency, leaders at the G20 Summit in Hangzhou pledged to strengthen macroeconomic policy coordination to maintain global growth, but failed to issue concrete proposals; the USTR is challenging China’s excessive government support for rice, corn, and wheat production at the WTO. • Policy trends in China’s economy: The decreasing efficiency of new credit, the speed with which China is accumulating debt, and the rise of nonperforming loans are contributing to China’s vulnerability to a banking crisis; McDonald’s and Yum! Brands to sell rights to operate in China as U.S. fast food restaurants face stagnant growth in China. • Sector focus – Rice, Corn, and Wheat: Chinese support for domestic farmers creates world’s largest stockpile of grain and may cost U.S. wheat farmers $650 million annually; U.S. rice farmers gain access to Chinese market for the first time; U.S. corn exports declined 91 percent from 2012 to 2015 as China blocked shipments of U.S. corn in 2014 and started diversifying its corn imports.
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.