China

Trends and Challenges Facing Companies in China:

  • The United States is the largest investor in China, and China is the United States’ third largest trading partner, with one of the largest economies in the world.
  • Despite being an important trading partner, trade-restrictive requirements persist for USCIB members doing business in China, including forced technology transfers, foreign investment restrictions, severe digital and cloud market access prohibitions, inadequate intellectual property protection, significantly disadvantaging and weakening the global competitiveness of U.S. companies.

USCIB’s Response:

  • Support resumption of bilateral dialogue and cooperation with China in order to stabilize relations, discuss disputes and effectively manage this extensive economic relationship that has been in downward spiral for several years.
  • Advance U.S. business concerns regarding China’s implementation of its WTO obligations and compliance with the “Phase One” U.S.-China Economic and Trade Agreement, specifically with USTR and the U.S. government interagency Trade Policy Staff Committee.
  • Promote Administration coordination with allies at the OECD, WTO, G20, G7 and other global forums on a collective approach to addressing security and supply chain concerns, distortive trade practices and securing a level playing field with China.
  • Oppose tariff wars and efforts to repeal Permanent Normal Trade Relations (PNTR) with China without meaningful consultation with industry and serious consideration of the economic harm it would cause.
  • Press for stronger, earlier and broader business engagement to ensure policies linked with economic security, such as investment screenings, are narrowly targeted and transparently implemented.
  • Monitor legislative and regulatory developments in the National People’s Congress and the central government in China

Magnifying Your Voice with USCIB:

  • USCIB is the only U.S. business association formally affiliated with the world’s three largest business organizations where we work with business leaders across the globe to extend our reach to influence policymakers in key international markets to American business.
  • We engage with our sister business organizations in China—the China Chamber of International Commerce (ICC China) and the China Enterprise Confederation (IOE China)—to address top issues facing U.S. companies engaged in trade and investment with China.
  • We build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad.

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Positions and Statements

USCIB Welcomes Senate’s Unanimous Confirmation Vote on USTR Tai - USCIB salutes the Senate for its unanimous vote on March 17 to confirm Katherine Tai as the next U.S. Trade…
USCIB Submits Comments to USTR on China’s Compliance With WTO - USCIB submitted comments on China’s compliance with WTO commitments on September 17. The comments were in response to the U.S.…

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News Stories

USCIB Meets With OECD to Offer Business Perspectives for OECD’s US Economic Survey (1/10/2024) - Representatives from the U.S. desk of the OECD’s Economics Department met with USCIB members and staff on January 8 to…
USCIB Provides Comments on China’s WTO Compliance, Urges Customs Reform, IP Protection and Open Market Access (9/27/2023) - USCIB submitted comments on September 20 to the U.S. Trade Representative (USTR) regarding China’s WTO compliance with its World Trade…

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Press Releases

USCIB Commends Phase 1 China Deal, Urges Further Negotiations (1/15/2020) - China continues to be an important market for U.S. business, and we recognize the progress on food and agricultural export…

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USCIB Urges Ongoing US-China Negotiations (8/14/2019) - Washington, D.C., August 13, 2019 – In response to President Trump’s announcement earlier today to delay implementation of a ten…

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Chair

Vacant

Staff

Alice Slayton Clark
Senior Vice President for Trade, Investment, and Digital Policy
asclark@uscib.org

Staff

Ashley Harrington
Policy & Program Assistant, Washington
aharrington@uscib.org

 

 

USCIB Meets With OECD to Offer Business Perspectives for OECD’s US Economic Survey

Representatives from the U.S. desk of the OECD’s Economics Department met with USCIB members and staff on January 8 to solicit business input into the next OECD United States Economic Survey. The OECD typically conducts these economic reviews every two years to assess the macroeconomic and structural policy challenges facing economies and offer recommendations.

A robust group of USCIB members participated in the meeting including Rick Johnston (Citi), Jerry Cook (Hanesbrands), Carolina Costa (RELX), Elizabeth Tate (Albright Stonebridge Group) and Cristian Rodriguez-Chiffelle (Boston Consulting Group). They discussed early findings from the OECD analysts that the United States will be experiencing a soft landing with weak economic growth expected in 2024, with GDP project at 1.5 percent, unemployment over 4 percent and abatement of inflationary pressures and wage growth. This led to a conversation about business outlooks on U.S. industrial policies (e.g. CHIPS Act), China trade policy and the impact of tariffs, U.S. retreat from economic globalization, economic security and reduced business voice in economic policy debates.

“As always, USCIB greatly appreciates the opportunity to meet with representatives from the OECD,” said Senior VP for Policy and Global Strategy Norine Kennedy. “As the sole U.S. representative to Business at OECD (BIAC), USCIB is in a unique position to offer invaluable U.S. business perspectives. We are committed to this important analysis and work of the OECD in providing well-informed recommendations to the U.S. government.”

OECD Surveys aim to promote a better understanding of a given country’s economic situation, identify the key challenges facing that country’s authorities and provide recommendations to improve the country’s overall economic performance.

 

Politico Cites USCIB in Article on USTR’s Extension of China 301 Tariffs

Politico’s Weekly Trade newsletter mentioned USCIB’s inclusion in an Americans for Free Trade (AFT) statement: USTR Extension of China Section 301 Tariff Exclusions. Americans for Free Trade (AFT) is a broad coalition of American businesses, trade organizations and workers.

AFT was cited as delivering a rebuke, responding to a decision from USTR to extend tariff exclusions for another five months on 77 medical goods and 352 non-medical products that were scheduled to expire on December 31.

Read more on Politico’s website. Subscription may be required.

USCIB Provides Comments on China’s WTO Compliance, Urges Customs Reform, IP Protection and Open Market Access

USCIB submitted comments on September 20 to the U.S. Trade Representative (USTR) regarding China’s WTO compliance with its World Trade Organization commitments. The submission raised a variety of concerns, including shortcomings with respect to intellectual property (IP) protection, trade facilitation, and market access.

The report notes that although China has improved many of its key IP laws since acceding to the WTO, there is a continued need to pressure China to comply with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) standards. According to USCIB, China provides inadequate criminal liability for copyright offenses and establishes inadequate thresholds for making a copyright case.

The submission also focuses on sectoral issues, such as agriculture and grain exports, high levels of piracy in the audiovisual sector and a lack of openness in the Chinese telecommunications market. For example, China’s Telecom Services Catalog incorrectly classifies a wide range of ICT technologies and services as telecom services, and there is increased scrutiny over China’s Cybersecurity Law. The comments put pressure on the U.S. government to address these key areas for global commerce, trade facilitation and security.

Echoing USCIB’s 2022 submission regarding China’s WTO compliance to USTR, the comments continue to voice concern over the Section 301 tariffs imposed against Chinese imports.

“USCIB condemns the unfair Chinese practices identified under the Section 301 investigations, including forced technology transfer requirements, intellectual property infringements, state interventions, and other unfair trade practices that harm U.S. companies, workers, consumers, and competitiveness. While we remain wholly committed to U.S. efforts to confront unfair trade practices, we are concerned that the Section 301 tariffs imposed against Chinese imports have done more harm than good, raising the cost of doing business in the United States and increased prices for U.S. families and workers,” said USCIB Vice President for International Investment and Trade Policy Alice Slayton Clark.

“China remains an important player on the world stage, and although cooperation can be challenging, we must continue to push for transparency and open market access,” she added. “Ensuring that China remains compliant with WTO regulations by bilaterally addressing challenges must remain a priority for the United States.”

USCIB Fosters Relationship With Chinese Counterpart CCPIT/CCOIC 

Left to right: Declan Daly, Zhao Jianying, Peter Robinson

The head of the U.S. Representative Office of the China Council for the Promotion of International Trade (CCPIT), Mme. Zhao Jianying, visited USCIB’s New York offices on March 8 to discuss areas of mutual interest and to foster the close working relationship between CCPIT and USCIB, which now spans over three decades.  

 Zhao Jianying, who became head of the CCPIT Representative Office last year, met with USCIB President and CEO Peter Robinson and COO Declan Daly. CCPIT is the China Council for the Promotion of International Trade and its affiliate, the China Council of International Commerce (CCOIC) is USCIB’s counterpart National Committee in the International Chamber of Commerce (ICC) 

Additionally, CCPIT/CCOIC is USCIB’s Chinese counterpart in the ATA Carnet system. ATA Carnet is a custom document for temporary imports and is honored in over 80 customs countries and territories worldwide and can be used for multiple trips during a one-year period.   

According to Robinson, USCIB helped ICC bring CCPIT/CCOIC into the ATA Carnet system in the 1990’s and the two organizations have been working together since. 

Although the economic relationship between the United States and China has been tense for the past several years, USCIB’s working relationship with our Chinese counterpart CCPIT/CCOIC remains robust,” said Robinson. “We appreciated meeting Mme. Zhao and we look forward to fostering our relationship with her and the rest of her team.” 

USCIB Comments on China’s WTO Commitments: Urges Protection of IP, Voices Concern Over 301 Tariffs

USCIB submitted comments to the U.S. Trade Representative regarding China’s WTO compliance with its World Trade Organization commitments, raising a broad array of concerns including in the areas of digital, intellectual property rights (IPR), regulatory policies, competition, transparency and standards.

The comments urge the U.S. government to continue to press for a complete suspension of all existing and proposed measures involving trade-restrictive requirements in the digital sector, where China has enacted and enforced a variety of trade-restrictive and overly prescriptive requirements on information technology (IT). In the area of intellectual property, USCIB urges the U.S. government to continue to press for increased protections, as well as enhanced and efficient enforcement options, better coordination and enforcement by Chinese authorities, and more severe penalties for infringement of IPR. The comments add that concerns about Chinese behavior even extend beyond WTO compliance issues to areas such as government procurement.

USCIB also raises concerns over the Section 301 tariffs imposed against Chinese imports, noting that these tariffs have caused harm to domestic industry and done little to date to change Chinese behavior. The tariffs cover over $370 billion in goods, raising the cost of doing business in the United States and increasing prices for U.S. families and workers, a hardship exacerbated by today’s inflationary environment. According to USCIB Director for Investment, Trade and China Alice Slayton Clark, “as these tariffs continue, they create uncertainty for businesses and negatively impact U.S. companies’ ability to invest in their companies to innovate new products, hire more American workers, and remain competitive globally.” It is essential that the United States adopt a robust strategy that does not only rely on the use of punitive tariffs to achieve its objectives with China.

“Engagement with China can be challenging but China’s importance in the global economy provides a strong incentive for the United States to engage on all fronts to find solutions and foster stability and growth in the relationship,” according to Clark. The United States must not only continue to promote U.S. interests in the WTO rules-based international trading order, but also work with allies to address common concerns with respect to China, and work bilaterally with China to resolve challenges.

USCIB Submits Comments to USTR on Indo-Pacific Economic Framework

USCIB submitted comments this week on the trade aspects of the Indo-Pacific Economic Framework (IPEF), a new Biden Administration initiative to engage regional partners on economic and trade priorities. U.S. officials do not envision the IPEF to produce a traditional trade agreement, but to instead achieve better harmonization and liberalization in the areas of trade, supply chain resilience, infrastructure, decarbonization, tax and anticorruption.

USCIB members welcome the initiative and seek ambitious results. With a population of 1.5 billion people, 62 percent of world-GDP and 46 percent of the world’s merchandise trade, the Indo-Pacific region offers significant market potential for American companies and the millions of workers they employ.

“We urge the Administration to pursue a substantive agreement with concrete outcomes, common standards, and strong rules that are enforceable and binding,” said USCIB Director for Investment, Trade and China Alice Slayton Clark.  “An affirmative economic strategy in the Indo-Pacific is critical to advancing U.S. economic and strategic interests.”

USCIB’s comments emphasized the importance of free market principles, particularly in the wake of COVID-19: “As the world rebounds from COVID-19, the United States can contribute to an inclusive, even and robust recovery with stronger trade engagement in the region, a goal made more urgent today as democracy, rule of law and free market principles come under challenge. The IPEF must strengthen U.S. relationships in the region, create more resilient supply chains and ultimately make U.S. allies less vulnerable to China’s economic coercion.”

USCIB Commences 2022 With Robust Engagement With Biden Trade Officials

USCIB is off to a vigorous start in 2022 in the area of business advocacy. In January, USCIB Director for Investment, Trade and China Alice Slayton Clark held three major committee meetings to bring USCIB members together with Biden Administration officials to discuss China, India and Indo-Pacific trade policy.

Launching this effort, the USCIB China Committee met January 11 for an off-the-record virtual discussion with Deputy Assistant USTR for China Affairs Tim Wineland regarding the key issues confronting the U.S.-China trade relationship. The meeting provided an opportunity for USCIB members to discuss the latest policy developments impacting relations with one of our largest trading partners; topics addressed included the Biden-Xi virtual leaders’ summit, the Administration’s new China trade policy and negotiating agenda for 2022, an assessment of the China Phase 1 trade agreement, and the U.S. plan to address industrial subsidies with China, among other concerns.

The following week, USCIB members met January 19 with Assistant USTR for South and Central Asia Chris Wilson and Deputy Assistant USTR Brendan Lynch for an update on the US-India Trade Policy Forum (TPF) process and the chance to share trade concerns to help inform U.S. priorities as TPF working groups in the areas of agriculture (regulatory alignment), non-agriculture, intellectual property, and services (including digital) are formed for 2022.  A dialogue established by India and the United States in 2005, the TPF was on pause for several years until the Biden Administration relaunched it with an inaugural meeting November 23, 2021.

According to Clark, “the TPF is important to the elimination of trade barriers between the United States and India, and we are grateful to the Biden Administration for resetting the bilateral relationship by reviving this process.  It was important for USCIB members to talk with the negotiators and share their company concerns so the discussions can yield the best results for U.S. industry and its workers.”

Finally, Deputy Assistant Secretary for Asia at the Department of Commerce Pamela Phan joined the USCIB Trade and Investment Committee quarterly meeting January 27 to discuss the Biden Administration’s recently announced Indo-Pacific Economic Framework (IPEF). The IPEF is a Biden Administration initiative intended to reassert U.S. leadership and influence, particularly vis-à-vis China’s economic linkages in the region.  While IPEF is in its early stages, USCIB felt it important to engage with Administration officials now to help shape workstreams and expectations for the discussions ahead.

USCIB Launches Competition Webinar Series; First One Focuses on China

The USCIB Competition Committee launched a new webinar series for 2022 titled “Updates in International Competition Law and Enforcement,” spotlighting antitrust developments in key jurisdictions around the globe.

The first event was held last week, focusing on China antitrust regulation and enforcement and featuring experts from the International Chamber of Commerce (ICC) China National Commission: Dr. Hao Zhan, managing partner at Anjie Law Firm Beijing and ICC Competition Commission regional ambassador to China, Susan Ning, senior partner and head of compliance department of King & Wood Mallesons in Beijing, and Song Ying, antitrust partner at Anjie Law Firm Beijing.

“We hope these webinars will benefit USCIB members, giving them the opportunity to learn from competition experts from around the globe on issues critical to their business,” said USCIB Director Investment, Trade and China Alice Slayton Clark.

Zhan discussed recent fundamental changes in China’s antitrust system, with consolidation in 2018 of three authorities into the State Administration for Market Regulation (SAMR), a centralized, vice ministry level authority with more power to promulgate and enforce competition rules and laws. According to Zhan, this has ushered in a new era of antitrust enforcement in China with the establishment of the State Anti-Monopoly Bureau and more cases and higher penalties targeting mostly the media, finance, technology internet platform and pharmaceutical sectors.

Ning outlined the Anti-Monopoly Law, draft amendments released in October 2021 and the anti-monopoly guidelines on the platform economy enacted in February 2021. She discussed how the trend in China is to focus antitrust efforts on the platform economy, focusing on the role of algorithms and platform technologies being misused to exclude or coordinate with others in the marketplace.  Vertical, horizontal and hub and spoke relationships are all targeted. She also discussed the behavior patterns for big data killing, when platforms discriminate in pricing practices using algorithms to differentiate consumers and customary spending costs and described a few high-profile penalty decisions imposed on platform operators who hindered the flow of consumers between platforms – “picking one from the two” problem.

Finally Song described the recent history of anti-monopoly law development in China, highlighting a few of the key changes sought through AML amendments, most of which fall under merger control, addressing no safe harbor, aiding and abetting (liability of third parties), stop the clock, and higher penalties for gun jumping, for example.

Clark plans to host the next webinar in the spring, spotlighting European or Latin American antitrust enforcement practices.

USCIB Presses USTR for Section 301 Tariff Relief

USCIB sent a letter to the United States Trade Representative (USTR) Katherine Tai urging for full reinstatement of the Section 301 product exclusion process and calling for a negotiated solution to put an end to the tariffs.

According to USCIB Director for Investment, Trade and China Alice Slayton Clark, the letter was dispatched December 1 as USCIB’s response to the recent USTR request for comment on the possible reinstatement of certain product exclusions subject to the Section 301 investigation of China’s acts, policies, and practices related to technology transfer, intellectual property and innovation (86 FR 56345).

“While reinstatement of the product exclusion process is an important first step, we urge USTR to grant exclusions to all 549 products currently under review, to broaden the Section 301 product exclusion process, and to intensify high level engagement with the Chinese government and U.S. allies on a negotiated solution that ends these harmful tariffs,” said Clark. The letter advocates for retroactive recuperation of duties, long term extensions and a full and transparent Section 301 product exclusion process. It also urges caution when considering any future unilateral actions or remedies, as Ambassador Tai has indicated an interest in launching a new Section 301 investigation into Chinese industrial subsidy policies.

The letter further emphasizes that, while USCIB remains wholly committed to U.S. efforts to confront unfair trade practices, “we are concerned that the Section 301 tariffs imposed against Chinese imports have done more harm than good. Today, the tariffs cover over $370 billion in goods, levying tariffs of up to twenty-five percent on almost every Chinese import into the United States, including USCIB member products across the entire scope of the Harmonized Tariff Schedule of the United States (HTS). The tariffs have raised the cost of doing business in the United States and increased prices for U.S. families without addressing or improving the practices identified by the Section 301.” This outcome runs counter to the Biden Administration’s Build Back Better agenda and goals for U.S. economic recovery.