April 2018 Trade Bulletin

Highlights of This Month’s Edition

• Bilateral trade: In February 2018, U.S. goods deficit with China hit $29.3 billion, a 27.4 percent jump year-on-year; U.S. exports stall at their 2017 level.
• Bilateral policy issues:  The USTR’s Section 301 report details unfair Chinese government technology transfer and IP practices; the USTR subsequently launched a WTO complaint regarding China’s licensing regulations and is working to identify imports to target with tariffs; a GAO report recommends Treasury review staffing and resource levels for CFIUS to determine whether they are sufficient for handling an increasingly difficult workload; President Trump blocks Qualcomm acquisition by Singapore-based Broadcom amid concerns it could weaken Qualcomm’s long-term ability to compete with Chinese firms.
• Policy trends in China’s economy: China’s National People’s Congress passes measures tightening the CCP’s control, including eliminating presidential term limits and approving a sweeping government reorganization plan; sweeping reforms to China’s government bureaucracy highlight government priorities and seek to reduce regulatory confusion, increasing efficiency and Party control over policy.
• Sector focus – 5G: China’s drive for global leadership in 5G creates new economic and national security concerns for the United States.