August 2016 Trade Bulletin

Highlights of this Month’s Edition:

• Bilateral trade: Weaker imports cause the U.S. goods deficit with China to fall 5.7 percent year-on-year in the first half of 2016; U.S. service exports to China reach record high, buoyed by high Chinese tourism spending in the United States.
• Bilateral policy issues: The United States and the EU fault China for lack of transparency at the WTO and cite concerns over delayed Chinese economic reform; the United States argues against granting China automatic market economy status in December; USTR is challenging China’s raw materials export restrictions at the WTO.
• Quarterly review of China’s economy: In the second quarter of 2016, GDP growth held steady from the previous quarter at 6.7 percent as Beijing again turned to stimulus measures to boost the economy.
• Policy trends in China’s economy: Chinese government approves debt-for-equity swap trials despite reservations from major banks; news portals shut down for violating China’s original news reporting prohibition.
• Sector focus – Market barriers to U.S. drugs, medical devices, and medical services: China’s aging population drives expansion in the health industry, but numerous market barriers limit access for U.S. firms.