July 2018 Trade Bulletin

Highlights of This Month’s Edition

• Bilateral trade: U.S.-China goods trade deficit reached $33.2 billion in May 2018, and $152.2 billion year-to-date.

• Bilateral policy issues: U.S. tariffs against $34 billion worth of Chinese imports go into effect as China implements retaliatory action and takes steps to dull the impact of U.S. tariffs on China’s economy; U.S. Department of Commerce reverses ZTE exclusion order, but Members of Congress are working on legislation to reinstate sanctions.

• Policy trends in China’s economy: Chinese investment in the United States fell 90 percent year-on-year to $1.8 billion in the first five months of 2018 due, in part, to Beijing’s intensified scrutiny of outbound flows; China issues new foreign investment negative list, lifting ownership restrictions in 22 industries, including airplane design and manufacturing, agriculture, automotive, banking, railway construction, and shipping.

• Sector Focus – China Pursues Foreign Semiconductor Technology: Since 2015, U.S. semiconductor firm Micron has been subject to a persistent, wide-ranging technology acquisition campaign from multiple Chinese actors, involving an attempted purchase, alleged IP theft, a direct challenge of Micron’s IP in China, and an on-going antitrust case.