September 2020 Trade Bulletin

Highlights of This Month’s Edition

• Bilateral trade: The U.S. goods trade deficit with China totaled $31.6 billion in July 2020; the goods deficit year-to-date was $163.3 billion, down 18.3 percent from last year.
• Trade and investment: U.S. and Chinese officials reviewed the Phase One Agreement’s implementation on August 24 amid a backdrop of low U.S. exports, with both sides reaffirming their commitment to the deal’s success; U.S.-Taiwan trade ties warm as Taipei eases restrictions on U.S. meat imports and Washington announces new platform for economic dialogue.
• Industrial policy and technology: White House moves to limit TikTok’s and WeChat’s operations in the United States over data security and disinformation concerns; U.S. Bureau of Industry and Security adds 24 Chinese companies to Entity List for involvement in South China Sea island building and issues final rule completely restricting sale of semiconductors made with U.S. equipment to Huawei.
• Financial markets: Beijing continues to upgrade Chinese exchanges as prospects of narrowed access to U.S. markets add urgency to domestic stock market reform.
• In focus – Tencent: Recent U.S. administrative action against WeChat highlights the ubiquitous nature of Tencent’s apps in China and its widespread investments abroad.