Most Recent Developments ............................................................................................................. 1
U.S. Trade with China ..................................................................................................................... 2
U.S. Merchandise Exports to China .......................................................................................... 4
Major U.S. Imports from China................................................................................................. 8
China as a Major Center for Global Supply Chains .................................................................. 9
U.S.-China Investment Ties ........................................................................................................... 12
China’s Holdings of U.S. Public and Private Securities .......................................................... 13
Bilateral Foreign Direct Investment Flows ............................................................................. 15
Issues Raised by Chinese FDI in the United States ................................................................. 19
Chinese Restrictions on U.S. FDI in China ....................................................................... 24
Major U.S.-China Trade Issues ...................................................................................................... 26
Chinese “State Capitalism” ..................................................................................................... 27
China’s Plan to Modernize the Economy and Promote Indigenous Innovation ................ 29
Intellectual Property Rights (IPR) ........................................................................................... 33
Technology Transfer Issues ............................................................................................... 36
Cyber Security Issues ........................................................................................................ 37
China’s Obligations in the World Trade Organization ............................................................. 39
WTO Implementation Issues ................................................................................................... 40
China’s Accession to the WTO Government Procurement Agreement (GPA) ................. 44
China’s Currency Policy .......................................................................................................... 45
The U.S.-China Strategic and Economic Dialogue........................................................................ 47
The July 2009 Economic Track Session............................................................................ 48
May 2010 Economic Track Session .................................................................................. 48
The May 2011 Economic Track ........................................................................................ 49
The May 2012 Economic Track ........................................................................................ 49
The May 2013 Economic Track ........................................................................................ 50
Concluding Observations ............................................................................................................... 51
Figures
Figure 1. U.S. Merchandise Trade with China: 2002-2013 and Projections for 2014 ..................... 4
Figure 2. Top 5 U.S. Merchandise Export Markets: 2013 ............................................................... 5
Figure 3. U.S. Manufactured Imports from Pacific Rim Countries as a Percent of Total
U.S. Manufactured Imports: 1990, 2000, and 2013 .................................................................... 10
Figure 4. U.S. Computer Imports from China as a Percentage of Total U.S. Computer
Imports: 2000-2013 .................................................................................................................... 11
Figure 5. China’s Holdings of U.S. Treasury Securities: 2002-April 2014 ................................... 14
Figure 6. BEA’s Estimate of Cumulative Chinese FDI in the United States on a UBO
Basis: 2005-2012 ........................................................................................................................ 16
Figure 7. Rhodium Group’s Estimates of Cumulative Chinese FDI in the United States on
a UBO Basis: 2005-2013 ............................................................................................................ 17
China-U.S. Trade Issues
Congressional Research Service
Tables
Table 1. U.S. Merchandise Trade with China: 1980-2013 and Protections for 2014 ...................... 3
Table 2. Major U.S. Exports to China: 2009-2013 .......................................................................... 5
Table 3. Major U.S. Merchandise Export Markets: 2004-2013 ....................................................... 6
Table 4. Major U.S. Merchandise Imports From China: 2009-2013 ............................................... 8
Table 5. China’s Holdings of U.S. Treasury Securities: 2002-April 2014 ..................................... 14
Table 6. U.S. Data on Annual U.S.–China Bilateral FDI Flows:
2005-2012 and Cumulative Value of FDI at Year-End 2012 ...................................................... 16
Contacts
Author Contact Information........................................................................................................... 52