US-China Relations - 8. page

Data released by the U.S. Department of Commerce showed that in 2023 Mexico surpassed China for the first time in over 20 years to become the largest source of goods imported by the U.S.

Well-known Chinese news site NetEase (NASDAQ: NTES) ran a report about the Department of Commerce Data. Below are some excerpts from their article:

As part of the U.S.’ so-called “weaning off dependence on China” strategy, the U.S. Biden administration is urging companies to find suppliers in allied countries or move manufacturing operations back to the United States.

The value of U.S. imports from Mexico increased by nearly five percent from 2022 to 2023, reaching more than US$475 billion. At the same time, the value of U.S. imports from China fell by about 20 percent, to US$427 billion.

This is the first time in more than 20 years that Mexico has surpassed China and become the largest source of imported goods to the United States. The last time the value of U.S. imports from Mexico exceeded that from China was in 2002.

The biggest decline in U.S. imports from China was in commodities such as computers, electronic products, chemicals, and pharmaceuticals, which are all ‘politically sensitive’ for the United States.

The impact of COVID-19 on global supply chains has also forced American companies to look for nearshore suppliers. … However, the actual situation is more complicated than that. Some Chinese manufacturers have already established factories in Mexico too.

Source: NetEase, February 8, 2024
https://www.163.com/dy/article/IQDSPONL051481US.html

Chinese tech companies like TikTok and SHEIN have rapidly increased their spending on lobbying efforts within the United States. TikTok’s parent company ByteDance spent $8.74 million on lobbying in 2023, a 77% increase over the previous year. SHEIN spent $2.12 million in 2023 on lobbying, a 760% increase. The moves come as the U.S. government ramps up scrutiny and rhetoric targeting the companies amid broader U.S.-China tensions. The statistics on lobbying expense come from mandatory disclosure reports that the companies filed with Congress. TikTok and SHEIN aim to expand in the massive U.S. consumer market as growth slows at home in China.

TikTok now has 170 million U.S. users, gaining popularity despite previous bans. An e-commerce feature was added to the platform in 2023. TikTok’s lobbying focuses on pushing back against bills in Congress that would restrict the company’s U.S. business or ban use on government devices. Starting after U.S. regulator discussion of a possible ban in 2020, TikTok has grown its lobbying staff to about 14 people. TikTok lobbying was likely successful in slowing momentum for a ban as public opposition fell.

SHEIN lobbies on apparel, e-commerce, and trade controls. The company reportedly hired a former U.S. Trade Representative employee to argue SHEIN’s economic benefits to Congress as the company plans a U.S. IPO. Some in Congress claim that SHEIN uses a customs loophole to sell goods that have been produced with forced labor.

Both companies aim to expand within the U.S. while facing more scrutiny over data and economic security.

Source: Nikkei, February 2, 2024
https://zh.cn.nikkei.com/china/ccompany/54759-2024-02-02-10-55-24.html

United Daily News (UDN), one of the primary Taiwanese news groups, recently reported on the global “2023 Notorious Markets List” recently announced by The Office of the U.S. Trade Representative (USTR). The list including 39 online markets and 33 physical markets where piracy is rampant. Among them, China’s online markets Taobao, WeChat, Pinduoduo (U.S. branch name Temu), and seven physical markets (including Shopee) were named again.

These Notorious Markets are considered to be involved in or to be abetting a large volume of trademark counterfeiting or copyright piracy. This year’s list focuses on the potential health and safety risks posed by counterfeit goods, which use poor quality materials and are manufactured without supervision or safety controls, resulting in products that are substandard, ineffective or dangerous. U.S. Trade Representative Katherine Tai said that counterfeit and pirated goods harms workers, consumers and small businesses, and ultimately harm the U.S. economy. She added that crackdown on trade in these goods is important for economic growth.

This year, seven Chinese physical markets were named on the list, including Huaqiang Electronic World, Luohu Commercial City, Beijing Silk Street Market, and Wuai Market. Although Shopee, headquartered in Singapore, has invested heavily in the past year to enhance anti-counterfeiting capabilities, there still remain a large number of counterfeit goods on the platform, and problems such as slow response times remain.

Source: UDN, January 30, 2024
https://udn.com/news/story/6809/7743640

People’s Daily posted a 17-seconds video clip (with Chinese subtitle) of Jake Sullivan, National Security Advisor of the United States, with title “Sullivan’s Admission: the U.S.’ Efforts to Change China over the Past Several Decades Have Failed.” In the video, Sullivan said:

“We realize that efforts, implied or explicit, to shape or change PRC (People’s Republic of China) over several decades did not succeed. We expect that PRC will be a major player on the world stage for the foreseeable future. That means that even as we compete, we have to find ways to live alongside one another.”

{Editor’s Note: The video clip seems to be from Sullivan’s long speech on the future of U.S.-China relations delivered at the Brookings Institution on January 30, 2024. A transcript of the entire speech is available here.}

Sources:
1. People’s Daily, February 2, 2024
http://world.people.com.cn/n1/2024/0202/c1002-40172130.html
2. White House, January 30, 2024
https://www.whitehouse.gov/briefing-room/speeches-remarks/2024/01/30/remarks-and-qa-by-national-security-advisor-jake-sullivan-on-the-future-of-u-s-china-relations/

Su Xiaohui, Deputy Director of the American Research Institute at the China Institute of International Studies, delivered a keynote speech via video at Xinhua News Agency’s 14th “Discussing World Affairs” International Symposium on January 9, 2024. Su believes that the U.S. continues to view China as its “primary competitor” and “the most significant geopolitical challenge [facing the U.S].” According to Su, the U.S.’ recent policy on China exhibits three new characteristics:

• Firstly, U.S. policy on China “has been forced to return to some degree of rationality.” Su suggests that “in 2023, the U.S. gained a clearer understanding of China, realizing that it cannot easily suppress or defeat China and that it thus must accept ‘peaceful coexistence.'” Also, “the U.S. recognizes that the China-U.S. relationship not only affects the two nations in question but also influences the overall international situation. The international community hopes for overall stability in the relations between these two major powers, and that relations [between the powers] will not get out of control.”
• Secondly, the U.S. “has recognized the necessity of cooperation with China.”
• Thirdly, U.S. policy is now along the lines of “contain China while engaging with China.” Su said that U.S. pressure on China is now “done via provocations through various means and on various levels,” and that in competing with China “the U.S. aims to precision-strike China while reducing the blowback on itself.”

Su also mentioned that China should “be cautious of U.S. attempts to use intergovernmental communication mechanisms for its own benefits or for fostering strategic competition. The U.S. believes that, by communicating with China about arms control, it can pull China into certain arms control treaties and thereby impose restrictions on China. This would enable the U.S. to ‘win without fighting.’ But China should not allow the U.S. to weaken it via such a low-cost approach.”

Source: Xinhua, January 12, 2024
https://app.xinhuanet.com/news/article.html?articleId=75adb2d947c23b8e9a06a8309ef97a03