Highlights of This Month’s Edition
• Bilateral trade: In January 2019, U.S. exports of goods to China fell 27.5 percent year-on-year to $7.1 billion—a record-setting decline; the monthly U.S. trade deficit in goods with China totaled $34.5 billion.
• Bilateral policy issues: On March 6, Huawei sued the U.S. government, alleging it had been unlawfully and incorrectly banned from U.S. government procurement.
• Policy trends in China’s economy: The Chinese government set an annual GDP growth target of between 6 and 6.5 percent in 2019 amid slowing global economic growth projections and ongoing trade tensions with the United States; China’s new Foreign Investment Law aims to address U.S. concerns about intellectual property theft and forced technology transfers; observers expressed concern the law will serve as window dressing and not result in meaningful change.
• In focus – China-EU relations: Intra-EU divisions on display amid President Xi’s trip to Europe; the European Commission labeled China a “systemic rival” and France tried to apply greater pressure on Chinese trade and technology policies, while Italy endorsed China’s Belt and Road Initiative.