House Foreign Affairs Committee Spars Over China Export Controls

Another day, another hearing on China on Capitol Hill. The House Foreign Affairs Committee held a hearing on Feb. 28 titled “Combatting the Generational Challenge of CCP Aggression”, with the main topic members and witnesses from the State and Commerce departments being export controls. Lastly, “decoupling” was brought up by Chairman Michael McFaul (R-TX) and…

China Trade Surplus Hits New Record

Key Points China ran a record-high trade surplus in 2022 of $878 billion, equivalent to about 4.8% of its GDP. China continues to rely on beggar-thy-neighbor export growth reliance. Last year China exports grew 7% while the domestic Chinese economy only grew at 3%, indicating that despite the talk in Beijing, China has not meaningfully…

Chinese Companies Build Factories in Mexico to Exploit “Friendshoring”

Key Points Products manufactured in Mexico contain an increasing amount of Chinese value. Foreign direct investment by Chinese firms in Mexico is up 276%, averaging $225 million annually, compared to investment prior to the U.S. imposition of Section 301 tariffs on Chinese goods. Chinese investment in Mexico means manufactured goods in Mexico will contain an…

Tariff schedule

Repealing China’s Most Favored Nation Status: A Guide

By Charles Benoit, CPA Trade Counsel In December, the U.S.-China Commission, a group created by Congress to advise on managing the bilateral relationship, formally recommended that China lose its Most-Favored Nation (MFN) tariff status. Referencing the decision to grant China permanent MFN status in 2001, Speaker McCarthy said in remarks on the House floor yesterday…