US-China Relations in the Biden Era: A Timeline

December 9, 2024 Posted by China Briefing Written by China Briefing Team Reading Time: 129 minutes

This article on US-China relations was originally posted on March 22, 2021, and last updated on December 9, 2024.

On January 20, 2021, Joe Biden was sworn in as the 46^th president of the United States, offering a chance to change the course of US-China relations, which had hit a low point under the outgoing Trump administration.

The four years witnessed escalating trade tensions culminating in a trade war and sanctions on Chinese technology companies.

Since Biden’s election, political and business stakeholders have been paying close attention to the direction of the new White House administration’s policy toward China.

Will the Biden administration be accommodating of China or take advantage of the new status quo established under his predecessor?

China Briefing previously monitored and documented major developments during the US-China trade war in the Trump era.

Here, we present a fresh timeline that will track key developments affecting bilateral ties between the world’s two largest economies under the Biden administration.

US-China relations in the Biden era

December 5, 2024: China Announces Countermeasures Against U.S. Defense Firms and Executives

The Ministry of Foreign Affairs of the People’s Republic of China has issued Order No. 14, effective immediately, in response to the recent U.S. arms sales to Taiwan. This action, which China views as a violation of the One-China principle and the three Sino-U.S. Joint Communiqués, has prompted Beijing to implement countermeasures under the Anti-Foreign Sanctions Law.

Key measures include:

Asset freezes and transaction bans: Thirteen U.S. defense companies, including Trelleborg Engineering, BRINC Drones, Rapid Flight, Red Six Solutions, Shield AI, Cynex, Firestorm Labs, Quietos Drone Systems, Havoc AI, Niros Technologies, Cyberlux, Domo Tactical Communications, and Group W, will have their assets in China frozen. Chinese entities and individuals are prohibited from conducting transactions or collaborations with these firms.
Sanctions on executives: Six senior executives from the listed companies, including Barbara Borgonovi (Raytheon), Gerard Huber (Raytheon), Charles Woodburn (BAE Systems), Richard Crawford (United Technologies), Beth Adler (Data Link Solutions), and Blake Resnick (BRINC Drones), will have their assets in China frozen. They are also barred from entering China, including Hong Kong and Macau, and from engaging in transactions or collaborations with Chinese entities or individuals.

These measures are effective from December 5, 2024.

December 3, 2024: US further expands chip export control with 140 additions to the Entity List, China announces retaliatory export controls on gallium, germanium, and antimony

On December 2, 2024, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced a package of rules designed to further impair China’s capability to produce advanced-node semiconductors. BIS stated that “this action is a proactive measure…to impede the PRC’s ability to procure and produce the technologies necessary for its military modernization.”

The actions include but are not limited to:

New controls on semiconductor manufacturing equipment needed to produce advanced-node integrated circuits, including certain etch, deposition, lithography, ion implantation, annealing, metrology and inspection, and cleaning tools.
New controls on software tools for developing or producing advanced-node integrated circuits, including certain software that increases the productivity of advanced machines or allows less-advanced machines to produce advanced chips.
New controls on high-bandwidth memory (HBM). HBM is critical to both AI training and inference at scale and is a key component of advanced computing integrated circuits (ICs). The new controls apply to U.S.-origin HBM as well as foreign-produced HBM subject to the EAR under the advanced computing Foreign Direct Product (FDP) rule. Certain HBM will be eligible for authorization under the new License Exception HBM.
Addition of 140 entities to the Entity List, in addition to 14 modifications, including semiconductor fabs, tool companies, and investment companies that are acting at the behest of Beijing to further the PRC’s advanced chip goals which pose a risk to U.S. and allied national security.
Establishment of two new FDP rules and corresponding de minimis provisions.
New software and technology controls, including restrictions on Electronic Computer Aided Design (ECAD) and Technology Computer Aided Design (TCAD) software and technology when there is “knowledge” that such items will be used for the design of advanced-node integrated circuits to be produced in Macau or a destination in Country Group D:5.
Clarification to the EAR regarding existing controls on software keys. Export controls now apply to the export, reexport, or transfer (in-country) of software keys that allow access to the use of specific hardware or software or renewal of existing software and hardware use licenses.

These actions serve two primary objectives:

Slowing China’s development of advanced AI.
Impairing China’s development of an indigenous semiconductor ecosystem.

In October 2022, BIS published an interim final rule (IFR) to restrict the PRC’s ability to both purchase and manufacture certain high-end semiconductors critical for military applications. As part of BIS’s commitment to continually evaluating the effectiveness of export controls, it released updated rules in October 2023 and April 2024. Today’s rules build on those efforts.

China’s Ministry of Commerce has firmly opposed the move. The Ministry of Commerce stated that the measures extend extraterritorial jurisdiction, interfering in trade between China and third countries, which is a typical act of economic coercion and non-market practice. The US has been inconsistent in its actions, continuously broadening the concept of national security, abusing export control measures, and engaging in unilateral bullying. China firmly opposes these actions. The semiconductor industry is highly globalized, and the US’s misuse of control measures severely hinders normal economic and trade exchanges between countries, disrupts market rules and the international economic and trade order, and threatens the stability of the global industrial and supply chains. The global semiconductor industry, including US companies, is seriously affected. China will take necessary measures to resolutely safeguard its legitimate rights and interests.

On December 3, 2024, China announced retaliatory export controls on gallium, germanium, and antimony to the US.

November 22, 2024: DHS Adds 29 New Entities to the UFLPA Entity List, Bringing Total to 107

On November 22, 2024, the Department of Homeland Security (DHS) announced the addition of 29 China-based companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, increasing the total number of entities on the list to 107.

The UFLPA serves as a key tool in the Biden-Harris administration’s efforts to combat alleged forced labor.

Starting November 25, 2024, U.S. Customs and Border Protection will enforce a rebuttable presumption that goods produced by these 29 entities are made with forced labor and, therefore, prohibited from entering the United States unless proven otherwise.

The 29 newly added companies include:

Tianjin Tianwei Food Co., Ltd.: Previously known as Tianjin Sanhe Fruit and Vegetable Co., Ltd., this company processes fruit, vegetables, and agricultural products, with a particular focus on tomato products. Located in Tianjin, China, the company integrates raw material cultivation, harvesting, production, processing, trade, and R&D.
Xinjiang Zhonghe Co., Ltd. (Xinjiang Joinworld Co., Ltd.): Based in the Xinjiang Uyghur Autonomous Region (XUAR), this company specializes in electronic materials and aluminum alloy products, including high-purity aluminum, electronic aluminum foil, electrode foil, and related products.
Xinjiang Nonferrous Metals Industry Group Co., Ltd. and three of its subsidiaries: These entities are located in the XUAR and are involved in the production of nonferrous metals and gold.
23 agricultural entities: The Forced Labor Enforcement Task Force (FLETF) has identified 23 additional entities involved in the production and sale of agricultural products such as tomato paste, walnuts, red dates, raisins, and other goods.

November 16, 2024: Biden and Xi Meet at the APEC Summit in Lima, Peru

At the Asia-Pacific Economic Cooperation (APEC) summit in Lima, Peru, US President Joe Biden and Chinese President Xi Jinping engaged in a candid two-hour discussion on November 16, addressing key issues in US-China relations.

This marked their final meeting before Biden leaves office, as President-elect Donald Trump’s administration prepares to take over in January. Topics ranged from cybercrime, Taiwan, and the South China Sea to trade, North Korea, and Russia. Xi emphasized China’s commitment to maintaining stable, healthy ties with the US, acknowledging past tensions but expressing readiness to work with the Trump administration to manage differences and expand cooperation.

The talks reflected a mix of contention and cautious dialogue. On trade, Biden’s policies—such as investment restrictions on Chinese technology sectors—were a point of friction. However, the two leaders found common ground on the importance of preventing the use of artificial intelligence in nuclear decision-making. With North Korea’s role in the Ukraine conflict raising concerns, Biden urged China to leverage its influence to prevent further escalation.

The meeting, while producing no major breakthroughs, underscored the complexity of managing bilateral tensions as the US prepares for a potentially more confrontational approach under Trump.

November 13, 2024: US Advisory Panel Recommends Repealing China’s Preferential Trade Status

China’s preferential trade status, a cornerstone of its economic growth, is under renewed scrutiny in the United States. The US-China Economic and Security Review Commission (USCC), a leading advisory panel on China, has recommended repealing this status. The panel argues that it allows China to enjoy favorable trade terms despite engaging in unfair trade practices. This proposal aligns with growing bipartisan support in the US Congress for adopting a tougher stance on China’s economic policies.

Revoking China’s Permanent Normal Trade Relations (PNTR) status could result in higher tariffs on Chinese imports, with potential repercussions for US consumers and businesses. It may also escalate tensions between the two economic superpowers and further strain global supply chains. Proponents, however, contend that such a move would enhance the United States’ ability to counter China’s non-market practices and safeguard American industries.

The USCC’s recommendation underscores the increasing complexity of US-China relations, characterized by both economic interdependence and strategic rivalry. As the two nations navigate contentious issues such as trade, technology, and security, the trajectory of their relationship remains uncertain.

October 28, 2024: US Issues Final Rules on Investment Restrictions Against China, Chinese Ministry of Commerce Responds

On October 28, the US Treasury Department issued final rules on investment restrictions against China, targeting sectors such as semiconductors, artificial intelligence, and quantum computing. These rules aim to prevent U.S. investments from advancing technologies that could pose national security threats.

Set to go into effect on January 2, 2025, the final rules provide the operative regulations for relevant stakeholders and explanatory discussion regarding their intent and application.

In response, China’s Ministry of Commerce expressed strong opposition, arguing that the restrictions will disrupt normal economic and trade cooperation and harm businesses in both countries. China has lodged stern representations with the US and reserves the right to take countermeasures. The Ministry urged the US to respect market economy principles and stop politicizing economic and trade issues to foster a favorable environment for bilateral cooperation.

The restrictions have already prompted some investment firms, like Sequoia Capital and Matrix Partners, to adjust their operations in China to comply with U.S. regulations.

October 2, 2024: DHS Adds First Steel and Aspartame Companies to UFLPA Entity List

On October 2, 2024, the U.S. Department of Homeland Security (DHS) announced the addition of two Chinese companies to the Uyghur Forced Labor Prevention Act (UFLPA) Entity List, increasing the total number of listed entities to 75. Effective October 3, 2024, U.S. Customs and Border Protection (CBP) will presume that goods produced by these companies are prohibited from entering the United States unless proven otherwise.

The newly listed companies are:

Baowu Group Xinjiang Bayi Iron and Steel Co., Ltd.: Based in the Urumqi Prefecture of the Xinjiang Uyghur Autonomous Region (XUAR), this company is involved in iron ore mining and steel manufacturing, producing rebar, hot-rolled coils, and medium and thick steel plates.
Changzhou Guanghui Food Ingredients Co., Ltd. (GSweet): Headquartered in Jiangsu, China, GSweet produces and sells aspartame, an artificial sweetener and food additive.

This marks the first time that steel and aspartame companies have been added to the UFLPA Entity List, reflecting ongoing concerns about forced labor practices in these industries.

October 2, 2024: The US Treasury adds two Chinese entities to the SDN list

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has added two Chinese entities to its Specially Designated Nationals (SDN) list. This action targets companies allegedly involved in facilitating weapons procurement and smuggling activities for the Houthi movement in Yemen. The entities are Shenzhen Boyu Imports and Exports Co., Ltd. and Shenzhen Jinghon Electronics Limited. Being added to the SDN list subjects them to sanctions, restricting their access to the U.S. financial system and prohibiting U.S. persons from engaging in transactions with them.

Day 1333 (September 13, 2024): USTR Finalizes China Tariff Actions Following Four-Year Review, Announces Significant Increases

On September 13, 2024, the Office of the United States Trade Representative (USTR) announced final modifications to the tariff actions under the Section 301 investigation, following a statutory four-year review. The modifications proposed in May 2024 have been largely adopted, with several updates intended to “strengthen actions to protect American businesses and workers from China’s unfair trade practices.”

Annex A provides a detailed table of the tariff increases across 14 product groups specified by the President, encompassing 382 subheadings and 7 statistical reporting numbers. These products are primarily in sectors targeted by China for dominance or where the U.S. has recently made significant domestic investments.

Effective September 27, tariff rates will increase to 100% on Chinese electric vehicles, 50% on solar cells, and 25% on EV battery parts, critical minerals, iron and steel, aluminum, masks, and shore container cranes. Tariff increases on semiconductor chips and other products will be phased in over the next two years. The increases for 2025 and 2026 will apply to relevant products on or after January 1 of the respective year.

The statement also includes an exclusion for enteral syringes, a proposal to cover additional tungsten, wafers, and polysilicon tariff lines, an exclusion for ship-to-shore cranes ordered before May 14, 2024, an expansion of the machinery exclusions process to include five additional tariff lines, and modifications to the proposed exclusions for solar manufacturing equipment.

On September 14, a spokesperson for China’s Ministry of Commerce expressed strong dissatisfaction and firm opposition to the USTR’s announcement of increased tariffs on certain Chinese goods. The spokesperson noted that the majority of public comments on the tariff review opposed the increases or called for expanded exemptions, indicating that the tariffs are unpopular. The spokesperson urged the U.S. to correct its actions and cancel all additional tariffs on Chinese goods, stating that China will take necessary measures to firmly safeguard the interests of Chinese enterprises.

Day 1329 to 1331 (September 9 to 11, 2024): US House of Representatives Pass Host of Anti-China Legislation During “China Week”

The US House of Representatives has passed a slew of bills targeting Chinese companies and industries during its first week back in session following the summer break, dubbed “China Week”. A total of 25 bills are up for deliberation.

Significant bills that have already been passed include the Biosecure Act, which codifies the Chinese biotech companies BGI, MGI, Complete Genomics, WuXi AppTec, and WuXi Biologic as “foreign adversary biotechnology companies” and renders them ineligible for certain federal contracts, and the Countering CCP Drones Act, which places the Chinese drone maker DJI on the Federal Communications Commission’s (FCC) Covered List, thereby prohibiting any new DJI models from being approved and operating in the US.

Meanwhile, the Decoupling From Foreign Adversarial Battery Dependence Act, also passed this week, forbids the US Department of Homeland Security from procuring batteries from six Chinese battery companies, namely Gotion, BYD, CATL, Envision, EVE, and Hithium.

The DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act, meanwhile, restricts funding to universities that have a relationship with a Confucius Institute.

Other passed bills include:

The Countering the PRC Malign Influence Fund Authorization Act
The Science and Technology Agreement Enhanced Congressional Notification Act
The Removing our Unsecure Technologies to Ensure Reliability and Security Act
The Chinese Currency Accountability Act
The Taiwan Conflict Deterrence Act
The Foreign Adversary Communications Transparency Act
The Hong Kong Economic and Trade Office Certification Act
The Economic Espionage Prevention Act
The Sanctions Lists Harmonization Act

A number of bills are yet to be deliberated and may be passed by the House later in September, including:

The Protect America’s Innovation and Economic Security from CCP Act of 2024, a revival of the controversial China Initiative (scrapped in 2022), which seeks to “curb spying by the CCP on US intellectual property and academic institutions” and “identify and prosecute individuals engaged in trade secret theft, hacking, and economic espionage”;
The Protecting American Agriculture from Foreign Adversaries Act of 2024, which will require additional reviews of purchases of farmland by “foreign adversaries”, including China; and
The End Chinese Dominance of Electric Vehicles in America Act of 2024, which would exclude vehicles with batteries that contain materials sourced from foreign entities from receiving clean vehicle tax credits.

The bills that have been passed by the House will now be deliberated by the Senate before being sent to the President to be signed into law.

Chinese officials have strongly criticized the passing of these bills. Answering a media question on the Biosecure Act, Chinese Foreign Ministry Spokesperson Mao Ning said that the bill was “discriminatory” and called on the US to “respect the principles of market economy and trade rules” and “stop suppressing Chinese companies under various pretexts”.

Meanwhile, the Spokesperson of the Chinese Embassy in Washington DC, speaking on the passing of the Hong Kong Economic and Trade Office Certification Act, which could see the closure of Hong Kong trade offices, said that some individuals in the US were “suppressing Hong Kong’s development for political purposes” while warning that China would take “resolute and strong countermeasures” should the US progress with the bill.

Day 1325 (September 5, 2024): US Commerce Department Implements Export Controls for Quantum Computing and Other Advanced Technologies.

The US Department of Commerce’s (DOC) Bureau of Industry and Security (BIS) has issued a new interim final rule imposing export controls on quantum computing items, advanced semiconductor manufacturing equipment, Gate All-Around Field-Effect Transistor (GAAFET) technology (used for high-performance computing chips) and additive manufacturing items designed to produce metal or metal alloy components.

According to the DOC, the export controls, which came into effect on September 6, 2024, seek to ensure these items are not used for purposes contrary to U.S. national security or foreign policy”, as they could be used for military purposes. The controls apply to all countries, with exceptions provided for exports and reexport to countries that have themselves implemented export controls on these items.

While the rule applies worldwide and does not explicitly mention China, exports or reexports of these items to China (and other countries) will require a license, with the license application to be reviewed “with a presumption of denial”. Meanwhile, exports and reexports to countries that impose export controls on conventional arms and dual-use goods and technologies (specifically, the Wassenaar Arrangement Participating States) will have their licenses reviewed with “a presumption of approval”.

This move is the latest in a long list of efforts made by the Biden administration to curb the exports of high-end and advanced technologies to China.

Day 1324 to 1326 (September 4 – 6, 2024): US Climate Envoy John Podesta Visits Beijing for US-China Climate Talks.

The US Senior Advisor to the President for International Climate Policy John Podesta met with China’s Special Envoy for Climate Change Liu Zhenmin in Beijing for the second US-China Working Group on Enhancing Climate Action in the 2020s.

According to a readout from the US State Department, the two sides reaffirmed their intention to hold a Methane and Other Non-CO2 Greenhouse Gases Summit at COP 29, which will be held in November, along with the COP 29 hosts Azerbaijan.

In addition, the two sides also reconfirmed collaboration on efforts to ban illegal imports as part of their commitment order to advance efforts to halt and reverse forest loss by 2030, as well as promote global forest conservation and sustainable management.

On September 6, Podesta also met with Chinese Foreign Minister Wang Yi. Per a meeting readout from the State Council, Wang championed bilateral engagement on climate change, stating that it is “not only an integral part of bilateral relations, but also an important measure to implement the consensus reached by the two heads of state” during their meeting in San Francisco in November 2023.

Podesta reportedly also stated that the US was willing to further “strengthen communication and coordination with China and engage in constructive cooperation”.

Day 1316 to 1318 (August 27 to 29, 2024): US National Security Advisor Jake Sullivan Meets with President Xi Jinping and Foreign Minister Wang Yi in Beijing.

On August 29, 2024, US National Security Advisor Jake Sullivan met with President Xi Jinping in Beijing in the first visit by a US national security advisor to China in eight years as part of ongoing efforts to increase bilateral engagement. According to a White House readout, the meeting focused on implementing commitments made during the November 2023 Woodside Summit, including counter-narcotics, military-to-military communications, AI safety, cross-strait relations, the Russia-Ukraine war, and the South China Sea.

According to the readout from the Chinese Ministry of Foreign Affairs (MOFA), Xi Jinping highlighted the need for global cooperation amid a turbulent international landscape, urging unity over division. He called for the US to work with China and for the two countries to “regard each other’s development as an opportunity rather than a challenge”, “to coexist peacefully and […] promote the stability of China-US relations”.

The MOFA readout also stated that Sullivan reiterated the US’s position on non-confrontation with China, stating that “the United States does not seek to fight a “new Cold War”, does not seek to change the Chinese system, does not seek to oppose China by strengthening the alliance system, does not support “Taiwan independence”, and has no intention of conflict with China.”

Earlier on August 27 and 28, Sullivan met with the Chinese Foreign Minister Wang Yi for discussions described as “candid, substantive, and constructive”. The meeting confirmed a series of upcoming exchanges between US and Chinese officials, including:

A leader-level call “in the coming weeks”;
A theater commander telephone call “in the near future”;
A visit by Senior Advisor to the President for International Climate Policy John Podesta to China in the first week of September

The two sides also discussed cooperation in reducing the flow of illicit synthetic drugs, the repatriation of undocumented migrants, and law enforcement, as well as steps to tackle the climate crisis.

However, Sullivan reiterated that the US would continue to take measures against what it perceives as “unfair trade policies and non-market economic practices, emphasizing that “the United States will continue to take necessary actions to prevent advanced US technologies from being used to undermine our national security, without unduly limiting trade or investment”.

Meanwhile, according to the MOFA readout, Wang Yi stated that the US “should stop suppressing China in the fields of economy, trade and science and technology, and stop undermining China’s legitimate interests”, while also criticizing the US’s use of “‘overcapacity’ as an excuse to engage in protectionism”.

Wang Yi outlined five key principles to “find the right way for the two major countries of China and the United States to get along.” These are, broadly:

Following the guidance of the two heads of state, who should “uphold the principles of mutual respect, peaceful coexistence and win-win cooperation”;
Avoiding conflict and confrontation by abiding by the three joint communiqués, wherein diplomatic relations are based on “respect for China’s sovereignty and territorial integrity, respect China’s political system and development path, and respect for the legitimate development rights of the Chinese people”;
Basing US-China interactions on equal treatment, in which bilateral interactions are not based on positions of strength;
Increasing people-to-people exchanges; and
“Establishing correct cognition”, wherein the US recognizes China’s commitment to enabling the Chinese people to live a better life domestically and make greater contributions to world peace and development internationally.

The two sides also discussed various foreign policy and national security matters, such as the Russia-Ukraine war, cross-Strait relations, the South China Sea, the Korean Peninsula, and the Middle East.

Day 1308 (August 19, 2024): US and China Agree to Strengthen Cooperation on Financial Stability.

Senior officials from the US Department of the Treasury and the People’s Bank of China (PBOC) convened in Shanghai for the fifth meeting of the Financial Working Group (FWG) on August 15-16, 2024. The FWG, established by US Secretary of the Treasury Janet L. Yellen and Chinese Vice Premier He Lifeng in September 2023, is a key forum for ongoing financial dialogue between the two nations.

According to the PBOC readout, the PBOC and the Treasury signed an exchange of notes aimed at strengthening China-US financial stability cooperation. This agreement included the exchange of lists of financial stability contacts. The initiative is designed to ensure that both nations’ financial management departments can maintain timely and smooth communication channels, particularly during events of financial stress or when operational risks at financial institutions arise, thereby reducing uncertainty.

Besides this agreement, discussions during the two-day meeting were described by the PCOC as “professional, pragmatic, frank, and constructive,” covering a wide range of topics including macroeconomic and financial stability, international financial institutions, cross-border payments and data, and capital markets. Both sides reviewed the outcomes of technical exchanges held earlier in the year, which focused on central bank climate scenario testing, operational resilience in the financial sector, and the resolution of Global Systemically Important Banks (G-SIBs). The Joint Treasury-PBOC Cooperation and Exchange on Anti-Money Laundering (AML), which had met in-person for the second time, discussed beneficial ownership and potential revisions to China’s AML laws.

According to the Treasury readout, the meeting also included a roundtable that brought together private firms from both countries to exchange views on climate financing, including transition planning and carbon markets.

Day 1289 (July 31, 2024): China Imposes Export Controls on Drones with Potential Dual Military Use

The Ministry of Commerce (MOFCOM), the General Administration of Customs, and the Central Military Commission’s Equipment Development Department have announced new export controls on drones and their key components, with the measures set to take effect on September 1, 2024.

The new regulations stipulate that the export of certain unmanned aerial vehicles (UAVs) and related items will require prior authorization. Specifically, the controls target items that meet the following criteria:

Aviation Engines: Specialized for specific UAVs or unmanned airships with a maximum sustained power exceeding 16 kW.
Payload Equipment: Includes infrared imaging devices, synthetic aperture radar (SAR), target-designating lasers, and inertial measurement units that meet certain technical standards.
Communication Equipment: Radio communication devices with long-distance transmission capabilities or multi-drone control capacity.
Anti-Drone Systems: Civilian systems designed to disrupt or destroy drones.

Exporters will be required to apply for licenses through provincial commerce departments and submit detailed documentation, including contracts, technical descriptions, end-user and end-use certificates, and identification of key personnel. The Ministry of Commerce, in conjunction with relevant departments, will review applications and issue export licenses.

The announcement also stresses that all UAVs not explicitly listed but known or suspected to be used for mass destruction, terrorism, or military purposes may also not be exported. Exporters found to violate this requirement may be held criminally liable.

According to a MOFCOM spokesperson, the primary aim of the export controls is to enhance national security by ensuring that advanced technology does not fall into the hands of adversaries or entities that could use it against China’s interests. The measures also align with China’s international obligations to prevent the proliferation of weapons of mass destruction and to combat terrorism. By controlling the export of sophisticated drone technology, China aims to comply with international non-proliferation agreements and restrict the use of such technology for harmful purposes.

However, the MOFCOM spokesperson also stated that China “opposes individual countries’ arbitrary use of drones as an excuse to impose illegal sanctions on Chinese companies and individuals”. This is likely in reference to the US, which has imposed export controls on various Chinese goods due to their purported dual military use.

In June, the US House of Representatives passed the National Defense Authorization Act for the year 2025 (FY25 NDAA), which includes the Countering CCP Drones Act. Among other things, this Act will require the inclusion of telecommunications and video surveillance equipment or services produced by the Chinese drone company DJI on a list of communications equipment or services that are “unacceptable risk to U.S. national security”. This would prohibit the use of federal funding to purchase or maintain any of the listed DJI equipment or services. This Act will have to be passed by the Senate before being signed into law by President Joe Biden.

Another version of the Act, called the Countering CCP 3 Drones and Supporting Drones for Law Enforcement Act, has also been introduced as an amendment to the FY25 NDAA by two senators, which also includes Autel Robotics, another Chinese drone maker.

Day 1285 (July 27, 2024): US Secretary of State Meets Chinese Foreign Minister in Vientiane

US Secretary of State Antony Blinken met with Chinese Foreign Minister Wang Yi on the sidelines of the ASEAN-related ministerial meetings in Vientiane, Laos. The discussions, described as open and productive, covered key bilateral, regional, and global issues.

According to the US Department of State readout, Secretary Blinken emphasized the importance of using diplomacy to responsibly manage competition and to address areas of difference while seeking cooperation on matters significant to the American people and the world. Blinken highlighted recent steps taken by China to advance counternarcotics cooperation and enhance military-to-military communication to prevent conflict. He reiterated the US commitment to safeguarding interests and values, including human rights, and stressed the priority of resolving cases of American citizens wrongfully detained or subject to exit bans in China.

The Chinese Ministry of Foreign Affairs readout noted that the meeting occurred at Blinken’s request and that both sides agreed to maintain communication and further implement the understandings reached by Presidents Joe Biden and Xi Jinping at the San Francisco meeting in November 2023. Wang Yi pointed out that while communication between the two governments has increased, the US has continued its containment and suppression of China, leading to rising risks and challenges in the bilateral relationship.

Wang Yi reiterated China’s consistent policy of mutual respect, peaceful coexistence, and win-win cooperation, urging the US to implement Biden’s commitments and adopt a rational and pragmatic policy towards China. He emphasized that China does not seek hegemony and is committed to peaceful development and the well-being of the Chinese people.

Both sides also exchanged views on Taiwan and discussed the situations in the South China Sea, Ukraine, Gaza, the Korean Peninsula, and Myanmar, among other issues, and recognized the importance of maintaining open lines of communication in the coming weeks and months.

Day 1273 (July 15, 2024): China’s Ministry of Commerce Requests WTO to Begin Dispute Negotiation on US Subsidies on Electric Vehicles.

China’s Ministry of Commerce (MOFCOM) has requested the World Trade Organization (WTO) to set up an expert group to investigate measures such as subsidies for new energy vehicles (NEVs) provided by the US under Biden’s flagship Inflation Reduction Act (IRA).

According to MOFCOM, the IRA “uses products from specific regions such as the US as a subsidy premise, excludes products from WTO members such as China, artificially sets up trade barriers, and pushes up the cost of energy green transformation.” It also called the measures “discriminatory, protectionist”, and in violation of WTO rules.

On March 26, 2024, China raised the matter of NEV subsidies under the IRA to the WTO through its dispute resolution mechanism. However, negotiations between China and the US failed to reach a solution, leading China to advance the litigation process with the WTO.

A core part of the IRA, which was signed into law in 2022, is to boost investment and development of green industries in the US by providing a range of subsidies, incentives, and tax credits to green industries, including domestic EV manufacturing. In May 2024, the US raised tariffs on Chinese EV imports from 25 percent to 100 percent, citing the domestic development of the industry as a motivator for the hike.

China is currently the world’s top EV manufacturer, but Chinese companies’ market penetration in the US remains low compared to other regions.

Day 1,249 (June 21, 2024): US Treasury Issues Draft Regulations Restricting US Investment in Sensitive Technology Sectors in China.

The US Treasury has issued a proposed rule that would ban or screen American investments in China’s semiconductors and microelectronics, quantum information technologies, and artificial intelligence sectors. This is part of President Biden’s aim to “prevent the exploitation of U.S. outbound investments by [China] seeking to develop sensitive technologies or products that are critical to the next generation of military, intelligence, surveillance, or cyber-enabled capabilities that pose national security risks to the United States”.

The proposed rule follows an executive order made by Biden in August 2023 to the Treasury Secretary to issue regulations requiring Americans to provide information on certain transactions or prohibit them from engaging in certain transactions with Chinese companies and individuals.

The draft regulations apply to the Chinese mainland and the special administrative regions of Hong Kong and Macao. The regulations will work by:

Prohibiting American individuals and companies from engaging in certain transactions involving the identified technology sectors that pose a particularly acute national security threat to the United States; and
Requiring American individuals and companies to notify the Treasury of certain other transactions involving these technology sectors that may contribute to the threat to the national security of the United States.

The Treasury is soliciting public feedback on the proposed rule until August 4, 2024.

Day 1,228 (May 31, 2024): Chinese and US Defense Ministers Meet for Talks in Singapore

The US Secretary of Defense Lloyd Austin met with the Chinese Minister of National Defense Admiral Dong Jun at the sidelines of the Shangri-La Dialogue defense summit in Singapore to discuss US-China defense relations and global security issues. This is the first face-to-face meeting between the countries’ military commanders since 2022 and follows a video conference call between the Secretary and the Admiral on April 16.

Per a readout from the US Department of Defense, the US side reaffirmed commitments to maintain open lines of military-to-military communication, resuming telephone conversations between theater commanders “in the coming months”, and plans to convene a crisis-communications working group by the end of the year.

Additionally, Secretary Austin raised concerns over stability across the Taiwan Strait but reaffirmed the US’s commitment to the One China Policy. However, he also “made clear that the United States will continue to fly, sail, and operate — safely and responsibly — wherever international law allows”, and that freedom of navigation under international law should continue to be respected. This is in reference to military drills that the US has carried out with allies in the South China Sea, a disputed territory.

Meanwhile, a readout from the Chinese Ministry of Defense echoed the US side’s calls for continued communication, stating that “the two militaries should adhere to the bottom line of non-conflict and non-confrontation” and that “the purpose of communication between the two militaries is to enhance understanding, eliminate misunderstandings and accumulate mutual trust.”

Admiral Dong also reiterated China’s stance on the Taiwan issue and stated that China opposes the US’s “acts that intensify provocations”, specifically citing activity surrounding Ren’ai Reef – also known as the Second Thomas Shoal – in the South China Sea.

Day 1,227 (May 30, 2024): China Customs to Impose Export Restrictions on Dual Use Aviation and Aerospace Technologies from July 1.

China’s General Administration of Customs has announced new export restrictions on four types of military-related equipment and technology. The export restrictions target products with potential dual military and civilian use and will be imposed to “fulfill international obligations such as non-proliferation” from July 1, 2024.

Four product categories will be subject to the restrictions:

Aerospace structural parts and engine manufacturing-related equipment, software, and technology.
Equipment, software, and technology related to gas turbine engine/gas turbine manufacturing.
Equipment, software, and technology related to space suit visors.
Items related to ultra-high molecular weight polyethylene fibers.

Companies wishing to export goods that fall under these categories will be required to undergo export licensing procedures, which include filling in an export application form for dual-use items and technologies.

The export restrictions do not target any specific country or region, according to the State Council. They are not expected to impact Western companies but will make it harder for military products to be exported from China to countries such as Russia, Ukraine, and Israel. They may also serve to protect Chinese companies from US sanctions for supplying technologies and materials with potential military use to Russia.

Day 1,219 (May 22, 2024): US Trade Representative Proposes to Implement Raised Tariffs on Chinese Imports From August 1, 2024.

The Office of the US Trade Representative (USTR) has released a federal notice proposing that some of the tariff modifications on Chinese imports be implemented from August 1, 2024.

The notice also proposes implementing 19 temporary exclusions for certain solar manufacturing equipment and released details on an exclusion process that allows companies to request for certain equipment used for domestic manufacturing to be excluded from the Section 301 tariffs. If granted, these exclusions would be effective until May 31, 2025

The USTR is soliciting public feedback on the tariff modifications and exclusion process from May 29, 2024, to June 28, 2024.

According to the notice, the tariff modifications set to come into effect in 2024 will do so on August 1, 2024, while those set to come into effect in 2025 and 2026 will do so on January 1 of the respective year.

As such, the tariffs will go into effect on these dates are as follows:

August 1, 2024: Tariff modifications on battery parts, electric vehicles, li-ion electrical vehicle batteries, other critical minerals, ship-to-shore cranes, solar cells, steel and aluminum products, syringes and needles, and facemasks will come into effect.
January 1, 2025: Tariff modifications on semiconductors will come into effect.
January 1, 2026: Tariff modifications on medical gloves, li-ion non-electrical vehicle batteries, natural graphite, and permanent magnets will come into effect.

Day 1,216 (May 19, 2024): China’s Commerce Ministry Launches Anti-Dumping Probe into Chemical Imports from the US, EU, Japan, and Taiwan.

China’s Ministry of Commerce (MOFCOM) has announced it will launch an anti-dumping investigation into imported polyformaldehyde (POM) copolymer originating in the EU, the US, Taiwan, and Japan. The investigation has been launched upon the request of several Chinese chemical companies, according to the MOFCOM announcement.

POM is used for the production of a wide range of products, including auto parts, electronic appliances, industrial machinery, sports equipment, medical equipment, pipe fittings, and construction materials.

This investigation will start on May 19, 2024, and be completed before May 19, 2025, with the possibility of a six-month extension.

This move by MOFCOM is widely seen as a retaliatory measure to export controls and anti-dumping measures imposed by the US, the EU, and other countries. Last week, the US announced increases in tariffs on 14 categories of Chinese imports. Meanwhile, the EU has launched several anti-subsidy probes into Chinese imports, including electric vehicles, wind turbines, solar panels, and some steel products. In April, Japan stated it was considering expanding export restrictions on key semiconductor technology.

Following the US announcement on the tariff hikes, China warned the US that it will take “resolute measures to defend its rights and interests”, per a statement from MOFCOM.

In April, China passed its new Tariff Law, which for the first time codifies rules on the imposition of anti-dumping and other counter-tariffs on imports.

Day 1,211 (May 14, 2024): US Set to Increase Tariffs on Chinese EVs, Solar Panels, Semiconductors, and More Following Review of Section 301 Tariffs.

The US is proposing to increase tariffs on 14 Chinese goods, targeting renewable technologies, semiconductors, and healthcare products in particular. They include imposing a 100 percent tariff on Chinese electric vehicles (EVs) in 2024, up from the current 25 percent.

In a statement issued today, the US Trade Representative (USTR) Katherine Tai said that “further action” was needed to counter what it says are unfair trade practices by China in addition to the existing Section 301 Tariffs.

The review claims to have found that the Section 301 tariffs have been “effective in encouraging the PRC to take steps toward eliminating some of its technology transfer-related acts, policies, and practices” while reducing exposure to US individuals and businesses to these actions. It also found that the tariffs have had a “small negative impact” on the US economy, while they have positively impacted production in 10 sectors most directly affected by the tariffs.

However, since China continues to impose policies related to technology transfer, according to the review, further action is needed to counteract them.

The recommendation by the USTR comes at the conclusion of a statutory review of the Section 301 Tariffs, which were first imposed by the Trump Administration in 2018. The USTR launched the statutory review in May 2022 in the lead-up to the four-year anniversary of the tariffs being implemented.

At the time, the Biden Administration suggested that the US may lift some tariffs on Chinese goods to fight inflation. The fact that it has now instead chosen to increase tariffs reflects how the trade relationship between China and the US has evolved in the last two years despite improvements in diplomatic dialogue, as well as the increasingly elevated position of renewables and high-end technologies as a consideration in national security.

The proposed tariff increases are as follows:

Battery parts (non-lithium-ion batteries): Increase rate to 25 percent in 2024
Electric vehicles: Increase rate to 100 percent in 2024
Facemasks: Increase rate to 25 percent in 2024
Lithium-ion electrical vehicle batteries: Increase rate to 25 percent in 2024
Lithium-ion non-electrical vehicle batteries: Increase rate to 25 percent in 2026
Medical gloves: Increase rate to 25 percent in 2026
Natural graphite: Increase rate to 25 percent in 2026
Other critical minerals: Increase rate to 25 percent in 2024
Permanent magnets: Increase rate to 25 percent in 2026
Semiconductors: Increase rate to 50 percent in 2025
Ship-to-shore cranes: Increase rate to 25 percent in 2024
Solar cells (whether or not assembled into modules): Increase rate to 50 percent in 2024
Steel and aluminum products: Increase rate to 25 percent in 2024
Syringes and needles: Increase rate to 50 percent in 2024

In addition to the tariff rises, the USTR also recommends establishing an “exclusion process” for machinery used in domestic manufacturing, targeting in particular solar manufacturing equipment.

In a regular press briefing, Chinese Foreign Spokesperson Wang Wenbin stated that “China opposes the unilateral imposition of tariffs which violate (World Trade Organization) rules, and will take all necessary actions to protect its legitimate rights”, according to CNN.

Day 1191 to 1193 (April 24 to 26, 2024): Secretary of State Antony Blinken meets with President Xi Jinping and other senior Chinese officials in Beijing.

US Secretary of State Antony Blinken has met with President Xi Jinping, Foreign Minister Wang Yi, and Minister of Public Security Wang Xiaohong during a three-day visit to China, holding “in-depth, substantive, and constructive discussions”.

In remarks made prior to their meeting, Xi acknowledged the 45th anniversary of US-China diplomatic relations and called for “mutual respect, peaceful coexistence, and willing cooperation to be the three overarching principles”.

In his meeting with Foreign Minister Wang Yi, Blinken discussed areas in which the two sides have advanced cooperation since the meeting between Presidents Biden and Xi in San Francisco last November, including “counternarcotics, military-to-military communication, talks on artificial intelligence risks and safety, and facilitating people-to-people exchanges”, per a readout from the US Department of State. The secretary also raised concerns over China’s support for Russia’s “defense industrial base”, cross-strait relations, and stability in the South China Sea, as well as issues in the Middle East and the Korean Peninsula.

Meanwhile, according to the readout from the Chinese Ministry of Foreign Affairs, Wang once again reiterated that Taiwan is a “red line” issue for China and that the US should continue to abide by the one-China principle and the three joint China-US communiqués. He also called on the US to “stop arming Taiwan and support China’s peaceful reunification”.

In his meeting with Wang Xiaohong, the two reviewed commitments made by the two sides to collaborate on counter-narcotics efforts, in particular the disruption of the trade and manufacturing of synthetic drugs such as fentanyl, one of the breakthroughs made during the Xi-Biden meeting in November.

During his meetings with the officials, Blinken also raised concerns over the fair treatment of American companies in China and the global economic consequences of China’s “industrial overcapacity”. He also reiterated that the US will continue to prevent “advanced US technologies from being used to undermine our national security and economy without unduly limiting trade or investment”, in reference to the US’ export restrictions on various types of advanced technologies to China.

Day 1191 (April 24, 2024): Joe Biden Signs Bill that will Force ByteDance to Divest from TikTok Following Senate Approval.

US President Joe Biden has signed into law a bill that will give TikTok’s parent company ByteDance 270 days to divest from the social media application or face a nationwide ban in the US. The US Senate passed the bill with a vote of 79 in favor to 18 against on Tuesday, April 23.

The TikTok divestment bill, officially titled the Protecting Americans From Foreign Adversary Controlled Applications Act, was bundled into a larger foreign aid bill (H.R.815) that will see the US provide US$95 billion in aid to Ukraine, Israel, and Taiwan.

ByteDance will have 165 days to challenge the legislation. A 90-day extension may also be given on the deadline if it can show that it has made progress in divesting from the application.

On April 19, Apple reportedly removed Meta platforms WhatsApp and Threads from its App Store in China following an order from Beijing. The foreign-owned messaging apps Telegram and Signal have reportedly also been removed from the App Store.

Day 1186 (April 19, 2024): China’s MOFCOM implements 43.5% anti-dumping tariff on US propionic acid imports.

China’s Ministry of Commerce (MOFCOM) announced temporary anti-dumping measures on propionic acid (PA) imports from the US, effective April 20, 2024. US companies importing PA will be required to provide tariff deposits at a rate of 43.5 percent to China Customs.

The decision follows an investigation launched by MOFCOM in July 2023 into imported PA originating in the US, per the announcement. The investigation found that dumping of this product was occurring, and that as a result “the domestic propionic acid industry had been substantially damaged, and that there was a causal relationship between the dumping and the substantial damage.”

PA is an important chemical product used widely in the production of food, animal feed, pesticides, and medicine, among other fields. However, MOFCOM’s new tariff is seen as largely symbolic given the relatively low volume of PA imported from the US. The move also comes after the US has stepped up rhetoric on what it says are unfair trade practices by China, threatening to increase tariffs targeting China’s steel, aluminum, and solar industries.

Day 1184 (April 17, 2024): Biden administration calls for tripling tariff rate on Chinese steel and aluminum imports.

The Biden administration has called on the US Trade Representative (USTR) to investigate what it calls “China’s unfair shipbuilding practices” and consider tripling tariffs on Chinese steel and aluminum imports from the current average rate of 7.5 percent.

The comments made by Biden follow an announcement from the USTR that it will launch a Section 301 investigation into China’s shipbuilding industry, specifically focusing on “acts, policies, and practices of [China] targeting the maritime, logistics, and shipbuilding sectors for dominance.”

The Biden administration argues that China’s subsidies and incentives to the domestic steel and aluminum industry artificially lower the prices of Chinese products, thereby undercutting US producers.

In addition to increasing the tariffs, the Biden administration has also vowed to take action against countries and importers that seek to circumvent the rules and avoid tariffs. It also said it would work with Mexico to prevent China and other countries from evading tariffs by importing products through Mexico.

On the same day, Reuters reported that the Biden administration is considering granting a request from a South Korean solar panel manufacturer to overturn an exemption that allows certain solar panel technology to be imported into the US from China and other countries without paying tariffs.

In a regular press conference on April 19, Chinese Foreign Ministry Spokesperson Lin Jian stated that Biden’s comments on Chinese steel dumping in the US are “far-fetched” and that “they hurt China-US trade ties”. He also stated that China’s industry focuses primarily on the domestic market, with only 5 percent of goods being exported, and that it receives no export-oriented subsidies.

Meanwhile, the China Council for the Promotion of International Trade (CCPIT), China’s trade promotion body, announced it will organize legal defenses for companies in the industry and participate in the US hearings “to effectively safeguard the legitimate rights and interests of Chinese companies”.

Day 1173 (April 6, 2024): Treasury Secretary Janet Yellen Announces New US-China Initiatives to Tackle Macroeconomic Imbalances and International Crime.

US Secretary of the Treasury Janet Yellen announced two new initiatives following meetings with Chinese Vice Premier He Lifeng in Guangzhou on April 5 and 6. Yellen is visiting China from April 4 to 9.

The two initiatives are as follows:

To hold “intensive” bilateral exchanges on balanced growth in the domestic and global economies to facilitate a discussion around macroeconomic imbalances, including their connection to overcapacity. According to Yellen, this will address US concerns “about the impact of Chinese industrial overcapacity in certain sectors as a result of government support, and the impact it could have on the American economy”.
To hold “Joint US Treasury-PBOC Cooperation and Exchange on Anti-Money Laundering”, which will seek to “expand cooperation against illicit finance and financial crime”. This exchange will aim to tackle international crime organizations, in particular those involved in fraud and drug trafficking, and to prevent them from exploiting loopholes in the US and Chinese financial systems. According to Yellen, the exchange will “enable the U.S. and China to share best practices and provide updates on the actions we are each taking to close loopholes in our respective financial systems”.

In addition to the above initiatives, Yellen stated that the US and China have announced they will continue to hold technical exchanges on financial issues.

In a press briefing on April 8, Yellen warned that the Biden Administration would not accept low-cost Chinese imports “decimating new industries” as a result of government subsidies and domestic overcapacity, but stopped short of threatening further tariffs.

Day 1169 (April 2, 2024): President Xi Jinping and President Joe Biden Hold Phone Call.

Xi and Biden held “candid and constructive” discussions in their first direct communication since their meeting in California in November 2023. According to the White House readout, the discussion sought to advance on progress made in the previous meeting, in particular in areas such as “counternarcotics cooperation, ongoing military-to-military communication, talks to address AI-related risks, and continuing efforts on climate change and people-to-people exchanges”.

Biden also reiterated the US’ concerns about China’s “unfair trade policies and non-market economic practices”, and stated that the US “will continue to take necessary actions to prevent advanced US technologies from being used to undermine our national security, without unduly limiting trade and investment.”

Meanwhile, according to the readout from the Chinese Ministry of Foreign Affairs, Xi outlined three overarching principles to guide US-China relations in 2024: Valuing peace and refraining from conflict and confrontation, prioritizing stability and refraining from setting the relationship back by provocation or “crossing the line”, and upholding credibility by honoring commitments to each other with action.

The two also discussed various global geo-political issues, including Taiwan, the Russia-Ukraine war, the Korean peninsula, and the South China Sea.

The US Department of the Treasury confirmed that Treasury Secretary Janet Yellen will visit China from April 3 to 9, while the Chinese Foreign Ministry stated that US Secretary of State Antony Blinken will visit China “shortly”.

Day 1149 (March 13, 2024): US House of Representatives Passes Bill to Ban TikTok

The US House of Representatives has voted to pass a Bill that would force ByteDance to divest from TikTok or be banned from operating in the US. The Bill passed with a vote of 352 in favor to 65 against.

The Protecting Americans from Foreign Adversary Controlled Applications Act, as the Bill is titled, would make it illegal for companies to distribute, maintain, update, or enable the distribution, maintenance, or updating of a “foreign adversary controlled” application within US territory. This would effectively ban application platforms such as App Store and Google Play, as well as network providers, from hosting the TikTok application in the US.

ByteDance will have a period of 165 days from the bill taking effect to either sell the US portion of the business or mount a legal dispute.

The bill must be passed by the Senate before being signed into law by President Joe Biden, who has previously stated that he will do so if it is passed by Congress. Uncertainty remains surrounding whether the Senate will pass the bill, as there is more disagreement regarding how to handle issues surrounding social media platforms. Additionally, senators, the Biden Administration may come under pressure from younger voters to abandon backing the bill.

Day 1143 (March 7, 2024): US House of Representatives Committee Pass Bill Requiring TikTok Divestment.

The Energy and Commerce Committee, a standing committee under the US House of Representatives, has unanimously passed a Bill that would require ByteDance, the Chinese owner of short video platform TikTok, to divest from the platform within six months.

However, the application can continue to be distributed if the “foreign adversary” divests from the application within 165 days of the Bill taking effect.

The Bill will now go to the House of Representatives for a vote in the coming week. President Biden has previously stated that he will sign the Bill if it is passed by Congress.

Day 1138 (March 2, 2024): US Commerce Department Adds 28 Chinese Companies to Entity List.

The Bureau of Industry and Security (BIS) under the US Department of Commerce has issued a new rule adding 37 entities to its so-called “Entity List”, which subjects companies to export controls and additional licensing requirements. Of the 37 entities, 28 were Chinese, and were added “for acquiring and attempting to acquire US-origin items in support of the PRC’s military modernization efforts, and for supplying or attempting to supply a sanctioned entity in Iran”.

The companies added include BGI Research and BGI Tech Solutions, two subsidiaries of the genomics company BGI Group, as well as server giant Inspur Group.

Day 1123 (February 16, 2024): Chinese Foreign Minister and US Secretary of State Meet a Munich Security Conference.

Chinese Foreign Ministry Wang Yi met with the US Secretary of State Antony Blinken at the sidelines of the Munich Security Conference (MSC) on Friday, in which they had a “candid and constructive discussion on a range of bilateral, regional, and global issues”, per the readout from the White House.

The two sides discussed a range of global geopolitical issues, including the Russia-Ukraine war, the Korean peninsula, and the Middle East. Blinken reportedly also “ emphasized the importance of maintaining peace and stability across the Taiwan Strait and in the South China Sea”. Meanwhile, Wang called on the US to “abide by the one-China principle and the three China-US joint communiqués” (referring to three joint statements made between the US and China between 1972 and 1982 in which the US acknowledged China’s stance on Taiwan and the “One China” policy).

According to the readout from the Chinese foreign ministry, Wang also urged a move away from the “de-coupling” and “de-risking” policies against China adopted in the West and called on the US to lift its “illegal unilateral sanctions against Chinese companies and individuals and refrain from doing things harmful to China’s legitimate development rights and interests”.

Both sides agreed to maintain open lines of communication in a range of fields, including counter-narcotics, foreign policy, Asia-Pacific affairs, maritime affairs, artificial intelligence, and military-to-military dialogue.

Day 1102 to 1103 (January 26 to 27): Chinese Foreign Minister and US National Security Advisor Hold Talks in Bangkok.

Chinese Foreign Minister Wang Yi and US National Security Advisor Jake Sullivan have met in Bangkok, Thailand for bilateral talks. The meeting sets the stage for a planned phone call between President Xi Jinping and President Joe Biden “at some point in the coming months”, per a background press briefing from the White House.

The White House readout states that the meeting “was part of the effort to maintain open lines of communication and responsibly manage competition in the relationship” following the Xi-Biden talks in San Francisco in November. Meanwhile, the readout from the Chinese Ministry of Foreign Affairs called the talks “candid, substantive and productive”.

Both officials recognized progress made in cooperation on a range of important issues, notably:

The resumption of military-to-military communication;
The establishment of a US-China dialogue on artificial intelligence, slated for the spring of 2024; and
The launch of the US-China Counternarcotics Working Group on January 30.

The two also discussed a variety of global security and regional issues, including the Russia-Ukraine war, the Middle East, the DPRK, the South China Sea, Burma, and cross-strait relations. Both sides stated that the two heads of state will “maintain regular contact”, and committed to promoting further exchanges in strategic areas, including diplomacy, military, economy, finance, business, and climate change.

Day 1095 (January 19, 2024): China and the US Hold the Third Meeting of the Financial Working Group.

Senior US and Chinese officials met in Beijing for the third Financial Working Group (FWG) meeting from January 18 to 19, the first of these meetings to be held in China. The meetings were co-chaired by officials from the US Treasury Department (the “Treasury”) and the People’s Bank of China (PBOC), China’s central bank, and attended by officials from the US Federal Reserve, the Chinese Ministry of Finance (MOF), and other government agencies.

The FWG was set up in September 2023 between the Treasury and the MOF, fulfilling a commitment made during Treasury Secretary Janet Yellen’s visit to Beijing in July 2023.

According to readouts from both the Treasury and the PBOC, the meetings held on January 18 and 19 reviewed recent “technical exchanges on climate stress testing and respective resolution planning frameworks for Global Systemically Important Banks (G-SIBs)”, while also discussing areas such as “financial stability and capital markets issues, international financial institutions, sustainable finance, cross-border payments and data, and anti-money laundering and countering the financing of terrorism”.

During their visit to Beijing, the Treasury delegation also met with Chinese Vice Premier He Lifeng. During this meeting, He reportedly stated that “China is willing […] to promote the development of bilateral relations in a healthy, stable and sustainable direction”, based on the progress made on bilateral ties during the meeting between President Biden and President Xi in San Francisco in November.

Day 1084 to 1085 (January 8 to 9, 2024): US and Chinese Officials Meet for Defense Talks.

Senior US and Chinese defense officials met for the 2024 US-PRC Defense Policy Coordination Talks, held from January 8 to 9, 2024 at the Pentagon.

The talks follow the resumption of bilateral military talks in December 2023, after such talks were suspended for over a year.

In attendance were Dr. Michael Chase, Deputy Assistant Secretary of Defense for China, Taiwan, and Mongolia, and Deputy Chief of the Office for International Military Cooperation of China’s Central Military Commission Major General Song Yanchao.

A readout from the Chinese Ministry of Defense (MOD) stated China’s willingness to develop bilateral military relations and cooperate on important defense issues.

The Chinese also stated that the US “needs to take seriously China’s concerns and do more things that contribute to the growth of the [military-to-military] relationship.” The Chinese side also emphasized its position on Taiwan and its interests in the South China Sea.

Meanwhile, a readout from the US Department of Defense (DOD) echoed the Chinese side’s position on developing the military relationship to prevent an escalation into conflict. The US side also reiterated the US’s commitment to the One China Policy, as well as the Taiwan Relations Act, the Three US-China Joint Communiques, and the Six Assurances.

However, Dr Chase also “reaffirmed that the United States will continue to fly, sail, and operate safely and responsibly wherever international law allows; and underscored that the U.S. commitment to our allies in the Indo-Pacific and globally remains ironclad.” The MOD readout called on the US to “to reduce military presence and provocation in the South China Sea and stop supporting provocative actions by certain country [sic].”

The two sides also discussed other global security issues, including the Russia-Ukraine War and the “provocations from the Democratic People’s Republic of Korea”.

Day 1071 (December 26, 2023): US Extends Tariff Exclusions for Chinese Goods

The US Trade Representative (USTR) has extended the exclusions from China Section 301 tariffs, initially set to expire on December 31, 2023, to May 31, 2024. According to the USTR, this extension allows for a systematic review of the exclusions, taking into account statutory factors and objectives. The USTR has also opened a docket for public comments on existing exclusions starting from January 22, 2024.

Day 1066 (December 21, 2023): China Restricts Exports of More High-End Technologies

China’s Ministry of Commerce (MOFCOM) has updated the Catalog of China’s Prohibited and Restricted Technologies for Export, per an announcement. The new catalog adds a range of high-end technologies, including laser radars, drones, and biotechnology products. The announcement also states that technologies with dual military and civilian uses are subject to export controls.

Day 1066 (December 21, 2023): US and China Resume Military Talks

Chinese General Liu Zhenli has held a video call with US General CQ Brown, the first senior military communication between Washington and Beijing since they were suspended in August 2022.

The Chinese Defense Ministry, referencing the recent meeting between Presidents Joe Biden and Xi Jinping in San Francisco in November, emphasized the need for mutual respect and equality in military exchanges to stabilize and improve bilateral relations. General Liu underscored that Taiwan is an internal matter for China, rejecting any external interference. He also urged the US to respect China’s territorial sovereignty in the South China Sea, emphasizing the importance of careful actions to maintain regional peace, stability, and the overall China-US relationship.

Meanwhile, the US Department of Defense reported that the talks addressed global and regional security issues, with General Brown highlighting the importance of responsible competition management and open communication to avoid misunderstandings. US officials expressed concerns about China’s lack of communication, citing provocative behavior and a rise in risky intercepts of US aircraft by China. The talks aimed to reduce misunderstandings and improve military dialogue.

The discussions also covered combating illicit drug activities and addressing risks associated with advanced artificial intelligence systems. While the talks were considered an important step, there is acknowledgment of the ongoing work needed to establish reliable communication channels between US and Chinese military leaders.

The last high-level talks between the US and China occurred in July 2022. President Biden reportedly secured China’s agreement to resume military-to-military talks during his meeting with President Xi Jinping in November.

Day 1045 (November 30, 2023): Montana’s Bill Banning TikTok Suspended On First Amendment Grounds.

Montana’s TikTok ban, which was due to take effect on January 1, 2024, has been suspended by a federal judge in a preliminary injunction following a lawsuit filed by TikTok Inc. and a group of TikTok users. TikTok’s ultimate parent company is the Chinese company ByteDance.

Senate Bill 419 was signed into law by Montana Governor Greg Gianforte in May of this year. The law made it illegal for mobile app stores, such as Apple’s App Store and Google Play, to host TikTok on their platforms. This was the first such bill passed into law by a US state, although the app had already been banned on government devices.

In the suit, TikTok argued that the bill “infringes on its First Amendment right to make editorial choices over content curation”, while the users argued that “their right to speak on the platform is limited by [the bill]”. In its conclusion, the preliminary injunction found that the bill “limits constitutionally protected First Amendment speech”, and that it “oversteps state power and infringes on the Constitutional rights of users and businesses”.

In addition, the preliminary injunction found that the bill failed on the grounds of “foreign affairs field preemption”, as “Despite the State’s attempt to defend SB 419 as a consumer protection bill, the current record leaves little doubt that Montana’s legislature and Attorney General were more interested in targeting China’s ostensible role in TikTok than with protecting Montana consumers.” As foreign affairs falls exclusively under the purview of the national government in the US Constitution, the bill exceeds the State of Montana’s powers on these grounds.

The preliminary injunction does not mean that the bill has been struck down, merely that further deliberation will be required and that the bill is prevented from coming into effect on January 1. The State of Montana will have to prove its case on consumer rights grounds for the bill to come into force.

Day 1030 (November 15, 2023): Xi and Biden Meet in San Francisco, Agree to Further Cooperation in Key Areas.

On November 15, 2023, Chinese President Xi Jinping and US President Joe Biden held their first face-to-face meeting in a year at the Filoli Estate in San Francisco. This is only the second time the two leaders have met during Biden’s term as president, although the two have previously met several times in other official capacities.

In remarks given ahead of the four-hour meeting, held on the sidelines of the APEC Summit, both leaders emphasized the importance of the bilateral relationship, with Xi calling it “the most important bilateral relationship in the world”.

According to Biden, the meeting was “among the most constructive and productive we’ve had”, and resulted in the establishment of several areas of cooperation, including artificial intelligence governance, counternarcotics, and defense, as well as commitments to improving transport links and expanding educational and cultural exchanges between the two countries.

For a full summary of the meeting, see our article: Xi-Biden Meeting: “Productive” Talks Lead to Increased Cooperation in Key Areas.

Day 1029 (November 14, 2023): US and China Reach Several Agreements on Climate Cooperation Following Meeting Between Envoys.

The US and China have agreed to ramp up cooperation on climate action, following meetings last week between climate envoys Xie Zhenhua and John Kerry in California.

A joint statement released by the Chinese Ministry of Ecology and Environment (MEE) and the US Department of State, respectively, outlines 25 points of agreement on jointly tackling the climate crisis. These include joint commitments to implement the Paris Agreement, triple renewable energy capacity globally by 2030, implement respective national methane action plans, implement technologies and measures to control greenhouse gas (GHG) emissions and air pollutants, and support climate cooperation between states, provinces, and cities in each country.

The statement also agreed on the intended contents of the decision on the first Global Stocktake, which will take place at COP28 at the end of November in Dubai. The Global Stocktake is a quinquennial assessment of the progress made on climate change action since the 2015 Paris Agreement.

The two sides stated that the decision should:

“Reflect that there has been substantial positive progress toward achieving the objectives of the Paris Agreement”;
“Reflect that substantially more ambition and implementation on action and support will be needed to achieve the Paris Agreement’s goals”;
“Send signals with respect to the energy transition (renewable energy, coal/oil/gas), carbon sinks including forests, non-CO2 gases [sic] including methane, and low-carbon technologies”’; and
“Note the expectation of the developed countries that the $100b goal will be met in 2023, reaffirm the urging of developed country Parties to at least double their provision of adaptation finance”, among other matters.

Finally, the two countries agreed to initiate or restart several cooperation platforms, including:

Operationalizing the Working Group on Enhancing Climate Action in the 2020s;
Recommencing bilateral dialogues on energy policies and strategies, carrying out exchanges on mutually agreed topics, and facilitating track II activities to enhance pragmatic cooperation; and
Initiating a technical working group cooperation on policy dialogue, technical solutions exchanges, and capacity building on methane reduction.

The progress in improving US-China dialogue on climate change signals that the two countries have found common ground for cooperation and is a significant reversal of previous trends. US-China talks on climate change were suspended in August 2022, following Nancy Pelosi’s controversial visit to Taipei.

The agreement comes ahead of the planned meeting between President Xi Jinping and President Joe Biden in San Francisco on Wednesday, November 15.

Day 1025 (November 10, 2023): Chinese Vice Premier He Lifeng Meets with US Treasury Secretary Janet Yellen Ahead of Xi-Biden Meeting.

The bilateral meetings, which took place in San Francisco before the start of the APEC Summit, covered a broad range of issues, including bilateral engagement on climate change, debt restructuring, promoting global financial stability, national security, and outbound investment.

The two sides struck a conciliatory tone and reached a consensus to improve cooperation on a number of issues, while acknowledging areas of disagreement.

In a press briefing held at the close of the meetings, the secretary emphasized that the US aims to achieve “a healthy economic relationship that benefits both our countries over time” and that it does “not seek to decouple [its] economy from China’s”.

This sentiment was echoed in the readout from the Chinese side, which stated that China and the US “do not seek economic ‘decoupling’ and welcome the development of healthy economic relations to provide a level playing field for enterprises and workers of the two countries and enhance the well-being of the two peoples”.

Per the official statements, the two officials laid out “specific areas of the bilateral economic relationship where we agree”, reaching important concessions in the following areas:

Strengthening communication, seeking consensus, managing differences, and avoiding misunderstandings and accidental escalation of friction; this will include continuing a regular cadence of contact between Secretary Yellen and Vice Premier He.
Working together to address common challenges, including economic growth, financial stability, and regulation.
Cooperating on climate change-related economic issues and debt issues in low-income and emerging economies.
Strengthening the international financial architecture, (including strengthening the IMF with the Executive Board’s approval of an equiproportional quota increase, bolstering the IMF’s ability to fight crises), and accelerating the adoption of reforms in multilateral development banks to make them better, larger, and more effective.
Welcoming the objective of a healthy economic relationship that provides a level playing field for companies and workers in both countries and benefits the two peoples.

Yellen and He previously met in July 2023 during the former’s trip to Beijing, in which the two agreed to maintain high-level exchanges and communications on economic issues in particular. These meetings resulted in the establishment of the Economic and Financial Working Groups in September, which convened “for the first time in recent weeks and had their second meetings yesterday” (November 9), according to Yellen.

The meetings between He and Yellen are an important stepping stone to the much-anticipated meeting between President Xi Jinping and President Joe Biden on Wednesday, November 15, during the APEC Summit in San Francisco.

Day 1025 (November 10, 2023): Chinese Ministry of Foreign Affairs Confirms Xi-Biden Meeting at APEC Summit in San Francisco.

A spokesperson for the Chinese Ministry of Foreign Affairs (MFA) has confirmed in a brief statement that President Xi Jinping will attend the APEC Summit in San Francisco from November 14 to 17, during which he will hold a meeting with President Joe Biden. He will also attend the 30th APEC Economic Leaders’ Informal Dialogue, which will take place on November 16.

US officials had previously announced that the meeting would take place on Wednesday, November 15, but it had not been officially confirmed by the China side.

This will be the first face-to-face meeting between the two leaders since they spoke on the sidelines of the G20 Summit in Bali, almost exactly one year ago.

Day 1019 to 1022 (November 4 to 7, 2023): China Climate Envoy Xie Zhenhua Meets with US Counterpart John Kerry During US Trip.

China’s veteran climate envoy Xie Zhenhua has met with US climate envoy John Kerry in California to promote bilateral cooperation on climate change ahead of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which will convene at the end of November in Dubai.

According to a brief statement from the Chinese Ministry of Environment and Ecology (MEE), the two sides conducted a “a comprehensive and in-depth exchange of views, and the meeting “reached positive results on carrying out bilateral cooperation and actions on climate change and jointly promoting the success of [COP28]”.

The US side has not yet released information following the conclusion of the meetings.

The conclusion of the meetings coincided with the release by the MEE of a Methane Emissions Control Action Plan, a potential move to lay the groundwork for further discussions on methane reduction at COP28.

Day 1021 (November 6, 2023): US and China Hold “Rare” Nuclear Arms Talks in Washington.

Assistant Secretary of State for the Bureau of Arms Control, Verification, and Compliance (AVC) Mallory Stewart and Chinese Ministry of Foreign Affairs (MFA) Director-General of Arms Control Sun Xiaobo on Monday met for discussions on nuclear arms control and non-proliferation. It is the first meeting of its nature between the two nuclear powers since 2019.

Per a statement from the MFA, the two sides exchanged views on a wide range of topics, including the Treaty on the Non-Proliferation of Nuclear Weapons, cooperation among the five nuclear-weapon states (US, Russia, the UK, France, and China), nuclear security, non-proliferation and export control, biological and chemical treaty compliance, outer space security, and conventional arms control.

According to a statement from the Department of State, the US:

“Emphasized the importance of increased PRC nuclear transparency and substantive engagement on practical measures to manage and reduce strategic risks across multiple domains”; and
“Highlighted the need to promote stability, help avert an unconstrained arms race, and manage competition so that it does not veer into conflict”.

Meanwhile, the MFA statement said that China emphasized the need for dialogue and cooperation on the basis of mutual respect between the two countries, and that “both sides should […], commit to safeguarding the international arms control and non-proliferation system, and achieve lasting peace and universal security in the world”.

Day 1021 (November 6, 2023): US Treasury Secretary to Host Vice Premier He Lifeng in San Francisco from November 9 to 10.

The US Department of the Treasury has announced a visit by Chinese Vice Premier He Lifeng for two days of bilateral meetings on November 9 and 10 in San Francisco, California. The meetings will take place just a few days ahead of the expected meeting between President Xi Jinping and President Joe Biden at the APEC Summit, which will also be held in San Francisco. The meetings are “designed to further stabilize the bilateral economic relationship and make progress on key economic issues”.

Secretary Yellen visited Beijing in July 2023, during which she met with several high-level Chinese officials, including Vice Premier He. These meetings resulted in the establishment of a joint Economic Working Group and Financial Working Group between the Department of the Treasury and the Chinese Ministry of Finance (MOF).

Day 1020 to 1025 (November 5 to 10, 2023): US Sends Largest-Ever Delegation to CIIE, Focusing on Agriculture Exports.

The US Department of Agriculture (USDA) is leading a delegation of officials and 17 exhibitors to this year’s China International Import Expo (CIIE) as part of the largest-ever delegation of US representatives since the event’s inauguration in 2018.

Joining the delegation are several US officials, including acting deputy under-secretary for trade and foreign agricultural affairs at the USDA Jason Hafemeister and senior adviser for North Asia at the USDA Wade Sheppard. The US has historically not sent government officials to the CIIE, making their attendance this year all the more significant.

Several other US agricultural groups and local US officials are also attending the expo. Among them is the US Heartland China Association, a private bipartisan organization that aims to build stronger ties between China and the US’ agriculture and industry-driven heartland region, which is sending a delegation of 20 state governors “to explore trade opportunities”. In addition, delegates from the American Meat Export Federation, the USA Poultry and Egg Export Council, the USA Rice Federation, and the US Cranberry Marketing Committee will also be present, per CIIE organizers.

The US delegation’s pavilion at CIIE 2023, which is co-sponsored by the USDA and the American Chamber of Commerce in China (AmCham China), will showcase agricultural products and technologies from California, Idaho, and Georgia.

China is the largest market for US agricultural products, in particular soybeans, corn, cotton, and meat products. In 2022, the US agricultural exports to China reached a total of US$40.9 billion, up 14.5 percent year-on-year according to the USDA.

The importance of the Chinese market to US agriculture makes it a pragmatic entry point to improving US-China relations and trade ties.

At the opening ceremony of the US pavilion at the CIIE, the US Ambassador to China Nicholas Burns called for more bilateral trade between the US and China, and stated that he is “not in favor of decoupling these two economies”.

The other US officials in attendance also made several comments in favor of more bilateral trade:

Jason Hafemeister stated that “The Chinese market is very important and it has a lot of growth potential”;
Connie Cheung from the Almond Board of California said that China’s huge consumer base and growing demand for “healthy, nutritious, and sustainable products” is driving market sales; and
Brent Boydston, Chairman of the US Grains Council, said that the council “looks forward to deepening the partnership [with China] during this trip”.

Day 1016 (November 1, 2023): White House Press Secretary Confirms Xi-Biden Meeting at APEC Summit in San Francisco.

White House Press Secretary Karine Jean-Pierre confirmed in a back-and-forth with a reporter at a press meeting that the much-anticipated meeting between President Joe Biden and President Xi Jinping will be held at the APEC Summit in San Francisco in mid-November. When prompted by the reporter, Jean-Pierre stated that “we’re having a constructive conversation in San Francisco” and “I think I just confirmed [the meeting]”.

The Chinese side has not yet released any official confirmation of the meeting. However, an unnamed US official told the Associated Press that during Chinese Foreign Minister Wang Yi’s visit to Washington DC from October 27 to 29, the two sides had reached “an agreement in principle” to hold the meeting, but that the exact date and venue had not yet been confirmed. The APEC Summit will run from November 11 to 17 in San Francisco.

When asked about these reports during a press briefing on November 1, Foreign Ministry Spokesperson Wang Wenbin would not confirm the meeting, simply saying that “China and the US agreed to work together for a meeting between the two heads of state in San Francisco”.

If the meeting goes ahead as planned, it will be the first face-to-face meeting between the two leaders since November 2022, when they met on the sidelines of the G20 Summit in Bali, Indonesia.

Day 1011 to 1013 (October 27 to 29): Foreign Minister Wang Yi Meets Joe Biden and Top US Officials in Washington Visit, Laying Groundwork for Xi-Biden Meeting.

Chinese Foreign Minister Wang Yi met with US President Joe Biden and other high-level US officials during his trip to Washington DC, a preparatory visit ahead of the potential meeting between Biden and President Xi Jinping at the APEC Conference in San Francisco in November.

The anticipated meeting was raised several times over the course of the trip, despite a Foreign Ministry spokesperson stating that the road to San Francisco “would not be a smooth one”.

A brief readout of the meeting from China’s Foreign Ministry states that the purpose of the meeting was to “communicate with the US side to earnestly implement the important common understandings between the two heads of state”, with Wang stating that “the two sides should work to stabilize the China-US relationship from further deterioration, and bring it back to the track of sound and stable development at an early date”. The Foreign Ministry readout also noted the “upcoming meeting in San Francisco”.

Meanwhile, according to a readout from the White House, Biden “emphasized that both the United States and China need to manage competition in the relationship responsibly and maintain open lines of communication” and that “the United States and China must work together to address global challenges”.

During his trip to DC, Wang also met with US Secretary of State Antony Blinken and National Security Advisor Jake Sullivan. In the meeting with Sullivan, which focused on matters related to international security, the two sides “reaffirmed their desire to maintain this strategic channel of communication and to pursue additional high-level diplomacy, including working together towards a meeting between President Biden and President Xi Jinping in San Francisco in November.”

Wang also held two rounds of meetings with Secretary of State Antony Blinken, in which “Both sides agreed to work together to achieve a meeting between the two heads of state in San Francisco”, per the Foreign Ministry. The two sides committed to engaging in various forms of communication, including “China-US maritime affairs consultations, China-US military control and non-proliferation consultations, China-US foreign policy consultations, and China-US coordination on disability affairs”. They also discussed signing a memorandum of understanding on cooperation on disability affairs in the near future.

They also agreed to further increase the number of direct passenger flights between China and the US.

Day 1009 (October 25, 2023): President Xi Jinping Meets with California Governor Gavin Newsom in Beijing During Trip to Advance China-US Cooperation on Climate Change.

Xi Jinping has held a surprise meeting with Governor of California Gavin Newsom, during the latter’s trip to China, the first by a US governor in four years. During his trip, the Governor also met with Chinese Foreign Minister Wang Yi and Vice President Han Zheng, and signed a climate-focused Memorandum of Understanding (MOU) with the Chairman of the National Development and Reform Commission (NDRC) Zheng Shanjie.

According to a readout from the Office of the Governor of California, throughout the meetings, the Governor discussed “how California and China can continue working together to advance climate action, promote economic development and tourism, and strengthen cultural ties”. He also refuted the possibility of US-China “decoupling”, stating that “Divorce is not an option. The only way we can solve the climate crisis is to continue our long-standing cooperation with China.”

Meanwhile, during his meeting with Newsom, President Xi made comments of a similar nature, stating that “China and the US have huge potential for cooperation in areas such as green development and addressing climate change”, per a readout from China’s Ministry of Foreign Affairs (MFA). Newsom also pointed out the importance of local connections between China and California, stating that “local exchanges are an important part of US-China relations. Historically, the Chinese have made important contributions to the construction of California, and California has always been an important gateway for the US to cooperate with China.”

The meetings come two days before Chinese Foreign Minister Wang Yi’s planned trip to Washington, which is seen as a crucial step toward arranging a meeting between Xi and Biden in November.

Day 1008 (October 24, 2023): Chinese Foreign Minister Wang Yi to Visit US from October 26.

China’s Ministry of Foreign Affairs (MFA) has confirmed that Chinese Foreign Minister Wang Yi will visit the US from October 26 to 28, at the invitation of the US Secretary of State Antony Blinken.

According to the announcement from the US Department of State, Blinken and Wang will discuss “a range of bilateral, regional, and global issues as part of ongoing efforts to responsibly manage the US-China relationship and to maintain open channels of communication”.

The visit is widely being seen as an effort to lay the groundwork for a potential meeting between Presidents Xi and Biden at the upcoming APEC Summit in November in San Francisco.

Day 1001 (October 17, 2023): US Further Tightens Export Controls of Advanced Chips to China

The Bureau of Industry and Security (BIS) of the US Department of Commerce (DOC) has released three rules tightening export restrictions on advanced computing semiconductors, semiconductor manufacturing equipment, and supercomputing items to China. The US claims China is using these types of items and technologies for military purposes.

The aim of the updated rules is to “increase effectiveness of our controls and further shut off pathways to evade our restrictions”, according to a BIS press release. They thereby “address […] the PRC’s efforts to obtain semiconductor manufacturing equipment essential to producing advanced integrated circuits needed for the next generation of advanced weapon systems, as well as high-end advanced computing semiconductors necessary to enable the development and production of technologies such as artificial intelligence (AI) used in military applications.”

The three new rules are summarized below.

Rule 1: The Advanced Computing Chips Rule adjusts parameters to determine whether an advanced computing chip is restricted, including a “performance density threshold” to prevent workarounds. It also imposes new measures to prevent circumvention of the controls, including requiring worldwide licensing to export controlled chips to any company headquartered or with an ultimate parent company located in a country or region subject to a US arms embargo.

Rule 2: The Expansion of Export Controls on Semiconductor Manufacturing Items imposes controls on additional types of semiconductor manufacturing equipment (SME), refines certain measures to ensure US companies cannot provide support to advanced Chinese semiconductor manufacturing while avoiding unintended impacts and expands license requirements for SME to all countries subject to a US arms embargo.

Rule 3: The addition of 13 Chinese entities to the Entity List due to their alleged involvement “in the development of advanced computing chips that have been found to be engaged in activities contrary to US national security and foreign policy interest”. Companies producing chips for these entities will be required to obtain a license from the BIS.

Analysts have noted that the changes to the restriction parameters for semiconductors will prevent major chip manufacturers such as Nvidia from exporting high-performance semiconductors to China.

China has stated strong opposition to the further tightening of chip export controls, calling for their removal. A spokesperson of the Chinese Ministry of Commerce stated that the US “has been overstretching the concept of national security, abusing export control measures”, and that the controls “severely damage market rules and international economic and trade order” and “cause heavy loss to US semiconductor firms and affects their counterparts in other countries”.

The BIS is soliciting public opinion on the three rules for a period of 60 days, after which they will come into force.

Day 991 to 993 (October 7 to 9, 2023): Xi Jinping Meets with US Congressional Delegation in Beijing During China Visit

A US bipartisan congressional delegation led by Senate Majority Leader Chuck Schumer held a rare meeting with President Xi Jinping on Monday afternoon.

During the meeting, at which the Chinese Foreign Minister Wang Yi was also present, President Xi called for increased cooperation between China and the US, stating that “the economies of China and the United States are deeply integrated, and we can benefit from each other’s development”, according to the official state media Xinhua News.

He also welcomed more members of the US Congress to visit China, and said “It is hoped that the legislative bodies of the two countries will have more contacts, dialogues and exchanges to enhance mutual understanding and make positive contributions to the stabilization and improvement of Sino-US relations.”

The delegation had met separately with Wang Yi earlier in the day. This meeting focused on improving the business environment for American companies and improving US-China business ties. According to the Associated Press, Schumer stated “We want the Chinese people to have economic opportunity. That would be good for America,” and that “China must also provide a level playing field for American companies and workers.”

Wang reportedly “urged the United States to respect China’s core interests and development rights. The Chinese government views American restrictions on trade and technology exports to China as attempts to hold back the country’s economic growth.”

The surprise meeting with Xi has been viewed as a positive development and has raised hopes that a meeting with US President Joe Biden could take place at the APEC Summit in November.

The US delegation arrived in Shanghai on Saturday, the first such visit by US lawmakers since 2019, under the previous administration. In Shanghai, the lawmakers met with the Secretary of the Shanghai Communist Party Chen Jining.

The meeting in Shanghai focused largely on promoting the interest of US businesses in China. According to Reuters, Schumer reiterated that the US does not seek to decouple from China, but also raised concerns of American businesses, stating that “‘many of our constituents feel that in instances China does not treat American companies fairly.’” According to Chinese media reports, Chen Jining told the delegation that “American companies are welcome to seize the opportunities of Chinese-style modernization and tap into the vast Chinese market through Shanghai”. He also stated that the city “will continue to create a market-oriented, legal and international first-class business environment”.

The delegation will also visit the northwestern city of Xi’an in Shaanxi Province before ending their China visit.

Day 990 (October 6, 2023): US Commerce Department Adds 42 Chinese Entities to Export Control List For Alleged Support to Russia’s Military

The Bureau of Industry and Security (BIS) of the US Department of Commerce announced that it has added 49 entities to the Entity List “for providing support to Russia’s military and/or defense industrial base”, of which 42 are Chinese.

According to the statement, “These entities supplied Russian consignees connected to the Russian defense sector with US-origin integrated circuits”. The statement says that Russia relies upon these components for precision guidance systems in the missiles and drones used in the Russia-Ukraine war.

In a statement responding to the news, China’s Ministry of Commerce called the move a “typical act of economic coercion and unilateral bullying” and called on the US to “immediately correct its wrong practices and stop its unreasonable suppression of Chinese companies”.

Day 976 (September 22, 2023): Chinese and US Finance Ministries Establish Joint Financial and Economic Working Groups.

The US Treasury Department and Chinese Ministry of Finance (MOF) announced the establishment of a joint Economic Working Group and Financial Working Group, fulfilling a commitment made during US Treasury Secretary Janet Yellen’s visit to Beijing in July.

According to the announcement from the US Treasury Department, the two working groups, which will be under the direction of Yellen and Chinese Vice Premier He Lifeng, will provide “ongoing structured channels for frank and substantive discussions on economic and financial policy matters”.

Vice ministerial-level officials of the two groups will reportedly meet “on a regular cadence” and report to Secretary Yellen and Vice Premier He.

According to sources cited by the South China Morning Post, the two sides “have resumed talks in several areas and are working on opening dialogues on arms control and artificial intelligence, but there has been limited progress on resuming military-to-military communications.”

The two working groups are the latest effort made by China and the US to improve ties and enhance bilateral cooperation on important issues. However, it is unclear whether they will be able to make breakthroughs on matters like export controls.

The announcement comes in the wake of a series of meetings between US and Chinese officials in recent weeks and months, which could potentially lay the groundwork for a meeting between President Biden and President Xi.

Day 972 (September 18, 2023): US Secretary of State Meets Chinese Vice President in New York.

The US Secretary of State Antony Blinken met with Chinese Vice President Han Zheng at the sidelines of the 78th UN General Assembly in New York City, a day following the meeting between Chinese Foreign Minister Wang Yi and National Security Advisor Jake Sullivan met

The readouts from the White House and the Chinese Ministry of Foreign Affairs (MFA) repeated familiar talking points from recent meetings between US and Chinese officials. The White House readout stated that Blinken and Han “exchanged views on a range of key bilateral, global, and regional issues, including Russia’s war against Ukraine, the DPRK’s provocative actions, and other topics.” Blinken also “emphasized that the United States will continue to use diplomacy to advance US interests and values and to discuss areas of difference’.

Meanwhile, according to the readout from the Ministry of Foreign Affairs (MFA), Han stated that “healthy and stable Sino-US relations are beneficial to both countries and the world” and that “China’s development is an opportunity rather than a challenge to the United States, and a gain rather than a risk”. Blinken reportedly stated that the US “hopes that China will succeed and continue to promote world economic growth”.

Meetings between Chinese and US officials have become increasingly frequent over the past few months as both sides seek to find common ground on important issues. These meetings may also lay the groundwork for potential meetings between President Biden and President Xi, which could take place at the Asia-Pacific Economic Cooperation summit in San Francisco in November, a year after their last meeting in Bali.

Day 970 to 971 (September 16 to 17, 2023): US National Security Advisor Meets Chinese Foreign Minister in Malta.

US National Security Advisor Jake Sullivan met with the Chinese Foreign Minister Wang Yi in Malta, holding what were described as “candid, substantive, and constructive discussions”. The pair last met in May in Vienna.

The readouts from both the White House and the Ministry of Foreign Affairs (MFA) are scant on detail, but stated that the two “discussed key issues in the US-China bilateral relationship, global and regional security issues, Russia’s war against Ukraine, and cross-Strait issues, among other topics” (White House). Meanwhile, the MFA readout stated that Wang reiterated China’s “red line” on Taiwan and that the US “must abide by the three Sino-US joint communiques and implement its commitment not to support ‘Taiwan independence’.”

Both sides also agreed to continue efforts to improve communication, including maintaining “high-level exchanges between the two sides and holding Sino-US consultations on Asia-Pacific affairs, maritime affairs, and foreign policy consultations.”

The meetings follow a string of encounters between Chinese and US officials in recent months, and are a further sign that the two countries are sincerely abiding by the consensus reached between President Xi and President Biden to improve communication in their meeting in Bali in November 2022.

Day 964 (September 10, 2023): President Joe Biden Meets with Premier Li Qiang at the G20 Summit in India.

Li is the highest-level Chinese official with whom Biden has met, and therefore the highest-level meeting between China and the US, since Biden’s meeting with President Xi Jinping on the sidelines of the 2022 G20 Summit in Indonesia last November.

In a press conference on September 11, Chinese Foreign Ministry Spokesperson Mao Ning told an AFP reporter that during the “brief exchanges” between Biden and Li, Li emphasized that “China’s development is an opportunity rather than a challenge to the US, and China and the US should strengthen exchanges.” According to Mao, President Biden said that “the US hopes that China’s economy will continue to grow and will not prevent China’s economic development.”

Neither the White House nor the Chinese Foreign Ministry has released an official readout of the exchanges at this time, but Biden has told reporters that the two “talked about stability” and that the encounter “wasn’t confrontational at all”.

This is the latest in a long string of meetings between Chinese and US officials in recent months and marks the latest efforts between the two countries to re-establish regular communication since the meeting between Biden and Xi in November 2022.

Day 950 to 952 (August 27 to 29, 2023): US and Chinese Commerce Officials Commit to New Communication Mechanisms in Meeting in Beijing.

On August 28, US Secretary of Commerce Gina Raimondo met with her Chinese counterpart, Minister of Commerce Wang Wentao, to discuss China-US economic and trade relations, including trade issues of common concern.

According to the readout of the meeting from the Chinese Ministry of Commerce (MOFCOM), Minister Wang expressed “serious concerns about US Section 301 tariffs on China, semiconductor policies, two-way investment restrictions, discriminatory subsidies, and sanctions on Chinese companies”. Meanwhile, in the readout from the US Department of Commerce (DOC), Secretary Raimondo “underscored the importance of leveling the playing field for US workers and businesses and ensuring the fair and transparent treatment of US companies in China.

The meeting between Raimondo and Wang led to a series of commitments to long-term and regular bilateral communication on key issues. Specific efforts to improve communication include:

The establishment of a working group composed of Chinese and US government officials at the vice-ministerial and director levels, as well as business representatives, which will hold vice-ministerial meetings twice a year;
The launch of an export control information exchange mechanism, which will “serve as a platform to reduce misunderstanding of US national security policies” (DOC), “explain [each country’s] respective export control systems, and improve communication” (MOFCOM);
The convening of technical consultations between experts from the two countries on strengthening the protection of commercial secrets and confidential business information in the process of administrative licensing; and
Commitments by the two ministers to communicate regularly and meet at least once a year.

China and the US have been embroiled in a range of trade disputes since former US President Trump imposed additional trade tariffs (Section 301 tariffs) on Chinese goods in 2018. The disputes have yet to be resolved and bilateral relations have further deteriorated with the imposition of further tit-for-tat sanctions and trade restrictions.

The visit by Raimondo is seen as an effort to move forward on bilateral discussions on these issues. It is also the latest in a series of high-profile visits by US officials to China in efforts to improve bilateral relations following the meeting between US President Joe Biden and Chinese President Xi Jinping in late 2022.

Day 945 (August 22, 2023): US Secretary of Commerce Meets with Chinese Ambassador Ahead of Beijing Trip.

The US Secretary of Commerce Gina Raimondo has met with the Chinese Ambassador to the US Xie Feng ahead of her upcoming visit to Beijing and Shanghai starting on August 27. The brief readout from the US Department of Commerce states that the two “shared a productive discussion” and that Raimondo “raised issues of importance to the United States and American businesses and workers and discussed issues relating to the US-China commercial relationship, challenges faced by US businesses, and areas for potential cooperation.”

The readout from the Chinese Embassy in the US stated that Xie spoke on “China’s position on economic and trade issues of China’s concern, requiring the US side to attach great importance and take actions to resolve them”. He also “called on the US side to work with China in the same direction, make the list of cooperation longer and shorten the negative list, so as to make joint efforts to stabilize China-US relations.”

Day 944 (August 21, 2023): US Lifts Export Restrictions on 27 Chinese Companies.

The US Commerce Department’s Bureau of Industry and Security (BIS) has announced the removal of 27 parties from the “Unverified List” after it determined it had successfully verified “the legitimacy and reliability of foreign parties receiving US exports”. The entities were originally added to the list because the BIS had been unable to verify their bona fides, which it describes as “legitimacy and reliability relating to the end use and end user of items subject to the EAR [Export Administration Regulations]”.

Entities placed on the Unverified List are subject to certain US export restrictions and prohibitions. On February 7, 2022, the BIS added 33 Chinese entities to the Unverified List, the majority of which were high-end technology companies.

Among the companies that have been removed from the list are Beijing SWT Science, Beijing Zhonghehangxun Technology, and Guangdong Guanghua Sci-Tech Co. The removals are effective from August 22, 2023.

The move has been welcomed by Chinese officials, with foreign spokesperson Wang Wenbin stating that it “shows that the two sides can address specific concerns through communication based on mutual respect.”

The timing of the move has been interpreted as an olive branch by the US ahead of the anticipated visit by US Secretary of Commerce Gina Raimondo to Beijing on Sunday, August 27.

Day 932 (August 9, 2023): President Biden Issues Executive Order Restricting US Investments in Chinese Tech.

According to a factsheet released by the US Department of the Treasury (the “Treasury”), the Executive Order Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern (the “EO”), the US will launch a new program, called the “Outbound Investment Program”, that will require US persons to notify the Treasury of certain transactions and prohibits them from investing in “narrow sub-sets of three advanced technology areas”.

The “country of concern” identified in the factsheet is China, along with the Special Administrative Regions of Hong Kong and Macao.

The three restricted areas are:

Semiconductors and microelectronics;
Quantum information technologies; and
Certain artificial intelligence systems.

These three categories were chosen as the target for the program due to their “critical role in accelerating the development of advanced military, intelligence, surveillance, and cyber-enabled capabilities”.

In addition to the EO, the Treasury issued the “Advance Notice of Proposed Rulemaking” (ANPRM), for which it is soliciting opinions from the public for 45 days after its release on August 9. The ANPRM, which will not act as draft regulations or implementation measures, provide further details on the initial considerations and proposals for the implementation of the new program.

Draft regulations for the new program will be released after the Treasury has finished gathering public comments.

The ANPRM identifies the following types of activities that will be restricted under the program:

Acquisition of equity interests (e.g., via mergers and acquisitions, private equity, venture capital, and other arrangements);
Greenfield investments;
Joint ventures; and
Certain debt financing transactions that are convertible to equity.

According to the factsheet, the program will “prevent US investments from helping accelerate the indigenization of these technologies in the PRC, which undermines the effectiveness of our existing export controls and inbound investment screening programs which also seek to protect US national security.” The new program will therefore work in tandem with existing technology export restrictions to China implemented by the US.

China has denounced the signing of the EO by President Biden, with a Chinese Foreign Ministry spokesperson stating that “China strongly deplores and firmly opposes the US’s single-minded rollout of restrictions on investments in China”. The spokesperson also said that the move is “politicizing business engagement” and that it is “blatant economic coercion and tech bullying”, “violates the principles of market economy and fair competition”, and “destabilizes global industrial and supply chains and hurts the interests of both China and the US and the global business community”.

The Biden administration has already imposed several other restrictive trade measures and sanctions on China, including export controls on key semiconductor technology and equipment to China. In response to the export controls, China recently announced restrictions on key metals used in the production of chips and electronic components.

According to analysts interviewed by the South China Morning Post, the investment curbs may have a limited impact on China’s technology sector. However, it may limit investment in China’s private sector, which could undermine recent efforts by the Chinese government to boost private sector investment.

Day 911 (July 20, 2023): President Xi Jinping Meets with Former US Secretary of State Henry Kissinger in Beijing.

The meeting came two days after Kissinger met with the Chinese Defense Minister Li Shangfu, in which they discussed the current state of US-China relations.

According to the readout posted on the Ministry of Foreign Affairs (MFA) website, the two recalled the secret visit that Kissinger made to China 52 years ago – which paved the way for the historic meeting between Chairman Mao Zedong and President Richard Nixon – and the subsequent development of US-China ties.

However, President Xi also noted that “China and the US are once again at a crossroads” and that “China is willing to discuss how the two countries can get along correctly with the US and promote the steady development of Chia-US relations”.

Meanwhile, Kissinger stated that “the US-China relationship is of vital importance to the peace and prosperity of both countries and the world” and that he is “willing to continue to make efforts to enhance mutual understanding between the people of the US and China”.

President Xi reportedly told Kissinger that “Chinese people value friendship, and we will never forget our old friend and your historic contribution to promoting the development of China-US relations and enhancing the friendship between the Chinese and American peoples”.

Given that Kissinger is no longer a serving official in the US, these meetings are largely symbolic and can be partly seen as an effort by Kissinger to solidify his diplomatic legacy. Nonetheless, he is also representative of China’s ideal diplomatic engagement with the US, while the meetings serve to highlight how much attitudes in Washington toward China have changed in the past decade.

Day 909 (July 18, 2023): Former US Secretary of State Henry Kissinger Meets Chinese Defense Minister in Beijing.

The Chinese Ministry of Defense (MOD) has released details of a meeting between Henry Kissinger and the Chinese Minister of Defense, Li Shangfu, on Tuesday, July 18. The visit, which had not been previously revealed to the public, takes place as the US Climate Envoy John Kerry is also in Beijing for climate talks and comes after a series of high-profile visits by incumbent US officials to China.

According to the MOD, Kissinger and Li discussed the current state of US-China relations and lamented the deterioration of bilateral ties.

According to the readout, Li said that China has “always been committed to building a stable, predictable, and constructive Sino-US relationship” and that “We hope the US side will work with China to implement the consensus reached by the two heads of state [in Bali in November 2022] and jointly promote the healthy and stable development of the relationship between the two countries and the two militaries.”

Meanwhile, Kissinger is reported to have said that he was there “as a friend of China” and that “The United States and China should eliminate misunderstandings, coexist peacefully, and avoid confrontation.”

Both sides also acknowledged the interdependence of the two countries and advocated for peaceful settlement of disputes, with commentary such as:

“The reality of interdependence between the two countries was ignored” in the process of deteriorating bilateral relations (attributed to Li); and
“History and practice have continuously proved that neither the United States nor China can afford to treat the other as an adversary” (attributed to Kissinger).

As many will be aware, this is not the first time Kissinger has traveled to China in secret. In 1971, almost exactly 52 years to the date, Kissinger embarked on a secret diplomatic mission to Beijing as the National Security Advisor to President Richard Nixon, where he met with Premier Zhou Enlai. This trip paved the way for President Nixon’s historic meeting with Chairman Mao Zedong in China in 1972, and eventually to the establishment of diplomatic ties in 1979.

Day 907 to 910 (July 16 to 19, 2023): US Climate Envoy Visits Beijing for Climate Talks.

The US Special Presidential Envoy for Climate John Kerry has started his four-day trip to Beijing, in which he will seek to promote cooperation between the US and China on the climate crisis. Thus far, Kerry has met with various Chinese officials, including Premier Li Qiang and top diplomat and Director of the Foreign Affairs Commission Office Wang Yi.

According to a brief readout of the meeting with Wang Yi on July 18, Wang stated that “China is willing to strengthen dialogue and communication with the United States, discuss mutually beneficial cooperation, and jointly address climate change.”

However, the readout also reiterated China’s position that cooperation on climate cannot be compartmentalized and must be taken as a whole with other China-US issues, in contrast to what Kerry has previously advocated. The readout states that “[climate change cooperation] cannot be separated from the understanding and support of the people of the two countries, and cannot be separated from the overall environment of China-US relations.”

Meanwhile, Kerry emphasized the need to stabilize the US-China relationship and reiterated the US’s adherence to the One China Policy, with the readout stating that “the US attaches importance to stabilizing US-China relations and hopes to work with China to further improve bilateral relations and benefit the world.”

The meeting with Premier Li Qiang furthered the bilateral consensus that more cooperation is needed between the US and China to fight climate change. The readout calls for the two sides to “strengthen coordination, build consensus, and act promptly to form a joint force to deal with climate change to the greatest extent”.

The Premier also highlighted the need for developed countries to do more to support developing countries in the fight against climate change, stating that “Developed countries should take the lead in reducing emissions and fulfill their financial commitments as soon as possible [and] provide more technical support to developing countries”.

Meanwhile, Kerry stated that the US “is willing to strengthen cooperation with China to jointly address urgent global challenges such as climate change”.

Kerry’s visit is the third by a high-level US official in the past month. These visits have been seen as a concerted effort to make breakthroughs and find common ground in the relationship, which had until recently been deteriorating further.

The climate talks also come after a series of extreme weather events in both countries in 2023, adding to the urgency for bilateral cooperation and consensus on climate change. On Sunday, China set a new heat record of 52.2C in Xinjiang Province and has experienced a series of severe heat waves and flooding in recent weeks and months. The US has seen similarly extreme weather events this year, including flooding, heat waves, and the adverse impact of wildfires in neighboring Canada.

Day 898 to 901 (July 6 to 9, 2023): US Treasury Secretary Janet Yellen Visits Beijing.

The US Treasury Secretary Janet Yellen has visited Beijing, the latest of a series of high-level visits by US officials to Beijing. During her four-day visit, Yellen met several top Chinese officials, including Premier Li Qiang, Vice Premier He Lifeng, Minister of Finance Liu Kun, and the Deputy Governor of the People’s Bank of China Pan Gongsheng.

At a press conference in Beijing, Yellen stated that the objective of her trip was to “establish and deepen relationships with the new economic leadership team in place in Beijing”. She struck a conciliatory tone, saying that the US-China relationship is “one of the most consequential of our time” and that “We believe that the world is big enough for both of our countries to thrive.”

Speaking on her meetings with Chinese officials, which she called “direct, substantive, and productive”, she said that the two sides were “able to learn more about each other’s economies and policy choices”, and that the meetings “served as a step forward in our effort to put the U.S.-China relationship on surer footing.”

According to Yellen, the meetings touched upon topics such as establishing healthy and fair economic competition between China and the US, security and human rights, and global issues that require US-China cooperation, “from tackling the climate crisis to addressing sovereign debt sustainability.”

Meanwhile, a readout of a media Q&A on Yellen’s visit published by China’s Ministry of Finance (MOF) echoed some of the sentiments of Yellen’s speech, stating that “a healthy and stable Sino-US relationship is not only beneficial to the two countries but also conducive to world peace and development”. It also stated that the meetings with Yellen were “frank, pragmatic, in-depth and constructive”.

The MOF readout stated that in the meetings, the Chinese side raised issues of concern for China, such as US tariffs on Chinese goods, export controls, fair two-way investment, and the ban on Xinjiang-related products. It also echoed the US stance on healthy competition, stating that “China believes that to achieve a healthy China-US economic relationship, we must fully respect the legitimate development rights and interests of all parties, and conduct healthy competition in accordance with market economic principles and WTO rules”.

Both sides agreed to maintain high-level exchanges and communications on important issues “at all levels in the economic field”, which was a major outcome of the meeting between President Biden and President Xi in Bali in November 2022.

Day 895 (July 3, 2023): China’s Ministry of Commerce Places Export Restrictions on Key Metals for Production of Chips.

China’s Ministry of Commerce (MOFCOM) has announced that it will place export restrictions on 14 gallium and germanium items, key metals used for the production of chips and other electronic components, in order to “safeguard national security and interests”. The restrictions will come into force on August 1.

Exporters will be required to apply for an export license to MOFCOM in order to receive permission to export the restricted items. If, in the process of the application review, the restricted items for export are found to “have a major impact on national security”, then the application will be sent to the State Council for further approval. Operators who export the listed items without an approved export license face potential penalties and criminal responsibility.

The export restrictions are based on China’s Export Control Law, released in 2020, which enables the government to impose restrictions on exports of certain commodities in order to “safeguard national security and interests, fulfill international obligations such as non-proliferation, and strengthen and standardize export control” (Article 1 of the Export Control Law).

The announcement does not mention targeted export restrictions to any country in particular, however, it has been widely seen as retaliation for the US’ export controls of key semiconductor technology. In October 2022, the US Department of Commerce implemented new export controls on advanced computing and semiconductors, requiring companies to receive a license to export US-made advanced computing and semiconductor products to China. Several other countries have followed suit in the months since.

China produces around 80 percent of the world’s gallium and 60 percent of the world’s germanium. The export restrictions, therefore, have the potential to significantly limit some producers’ access to these important materials and increase prices, as there are few alternative options. However, some analysts have suggested that the impact may be limited depending on the current stock of the materials available, and for how long the restrictions will be imposed.

Day 894 (July 2, 2023): US Treasury Secretary Janet Yellen to Visit Beijing this Week.

In an announcement published on Sunday, the US Treasury Department confirmed that the secretary will travel to Beijing from July 6 to 9. During her visit, the secretary will discuss the importance for the two countries “to responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges”, echoing statements made during US Secretary of State Antony Blinken’s visit to Beijing two weeks ago.

The announcement also states that the visit follows the directive of President Joe Biden to deepen communication with China, a commitment he reached with Chinese President Xi Jinping during their last meeting at the sidelines of the G20 Summit in Bali, Indonesia in November 2022.

Chinese and US officials have increased bilateral engagement in recent months, signaling that the two countries are striving to make a breakthrough in the frosty relations.

Day 882 (June 20, 2023): China and the US agree to engage in increasing the number of weekly flights.

The US and China have agreed to discuss increasing the number of flights between the two countries, a commitment reached during US Secretary of State Antony Blinken’s visit to China. During his meeting with Chinese Foreign Minister Qin Gang, the two sides agreed to have “more people-to-people and educational exchanges” and that “both sides welcomed more mutual visits by students, scholars, and business people, and agreed to provide support and facilitation to this end.”

In a press meeting on Wednesday, June 20, Foreign Ministry spokesperson Mao Ning confirmed this commitment, stating that Blinken and Qin “had positive discussions on increasing passenger flights between the two countries” and that “Competent departments of China and the US have been in communication on increasing passenger flights.” Flights between the US and China have remained low since the pandemic, despite the lifting of all international travel restrictions at the beginning of 2023. The number of flights has remained low in part due to a dispute between the two countries over flight operators and permitted routes.

Day 881 (June 19, 2023): President Xi Jinping Meets with US Secretary of State Antony Blinken in Beijing.

Details have been released of the meeting between Chinese President Xi Jinping and US Secretary of State Antony Blinken on Monday. Per a transcript of the meeting published by the Department of State, Xi stated that interactions between the two sides “should always be based on mutual respect and sincerity” and hoped that the meeting would help to provide “more positive contributions to stabilizing China-US relations.”

According to the readout from the Chinese foreign ministry, Xi stressed that conflict between the two countries was a matter of global concern, stating that:

“‘[…] the world needs a generally stable China-US relationship”; and
“The international community […] does not want to see conflict or confrontation between China and the United States or choose sides between the two countries”.

He also warned that competition between the two countries would not solve the US’ problems, stating that:

“China respects US interests and does not seek to challenge or displace the United States”; and

“the United States needs to respect China and must not hurt China’s legitimate rights and interests”.

Meanwhile, Blinken told President Xi that President Joe Biden had stated that “the United States and China have an obligation and responsibility to manage our relationship” and that this is “in the interest of the United States, in the interests of China, and in the interest of the world”.

Blinken’s visit to China, which was postponed in February due to a diplomatic spat, is the first such trip by a US Secretary of State in five years.

Blinken also met with Chinese Foreign Minister Qin Gang and senior diplomat Wang Yi on Sunday and Monday morning, with whom he held what was described as “candid and constructive” conversations.

Blinken’s meetings in Beijing are undoubtedly a positive sign of a “thaw” in the relationship and marks an incremental step toward more stable ties. Progress henceforth will hinge upon the two sides’ ability to handle unforeseen events that could once again derail the relationship.

Day 880 to 881 (June 18 to 19, 2023): Secretary of State Antony Blinken Meets with President Xi Jinping and Foreign Minister Qin Gang in Beijing.

Chinese state media has reported that US Secretary of State Antony Blinken met with President Xi Jinping in Beijing on Monday. The meeting is part of Blinken’s long-awaited trip to China that was postponed in February due to a diplomatic spat. Few details have been released about the meeting with Xi at the time of writing.

On Sunday, Blinken held “candid, substantive, and constructive talks” with Chinese Foreign Minister Qin Gang. According to the readout released by the Chinese foreign ministry, Qin Gang noted that the China-US relationship was at “the lowest point since its establishment” and that “this does not serve the fundamental interests of the two peoples or meet the shared expectations of the international community”. He also called for the two parties to handle “unexpected and sporadic events in a calm, professional and rational manner”, likely referring to the range of diplomatic issues that have arisen over the past few months, including the so-called “spy balloon” incident in February and the near collision between US and Chinese military vessels in the Taiwan Strait.

Meanwhile, the readout from the Department of State writes that Blinken “emphasized the importance of diplomacy and maintaining open channels of communication across the full range of issues to reduce the risk of misperception and miscalculation”.

One notable outcome of the meeting was the commitment by both sides to encourage “more people-to-people and educational exchanges” and that “both sides welcomed more mutual visits by students, scholars, and business people, and agreed to provide support and facilitation to this end.”

In addition, the two had “positive discussions on increasing passenger flights between the two countries.” Despite the lifting of China’s COVID-19 restrictions at the end of 2022, flights between the US and China remained far below pre-pandemic levels, with non-stop commercial flights between the two countries 94 percent below pre-pandemic levels, partly due to an ongoing dispute over the number of flight routes.

Both readouts stated that Qin had been invited to the US, with the Chinese foreign ministry stating that “Qin expressed his readiness to make the visit at a mutually convenient time.”

Day 876 (June 14, 2023): US Secretary of State Antony Blinken’s trip to China confirmed following a phone call with the Chinese foreign minister.

The US Department of State has confirmed that Secretary of State Antony Blinken will visit Beijing between June 16 and 21, during which time he will also visit London.

According to the readout, Blinken will “meet with senior PRC officials where he will discuss the importance of maintaining open lines of communication to responsibly manage the US-PRC relationship. He will also raise bilateral issues of concern, global and regional matters, and potential cooperation on shared transnational challenges.”

On Tuesday, June 13, Blinken had a conversation over the phone with China’s Foreign Minister Qin Gang, in which they also discussed “the importance of maintaining open lines of communication […] to avoid miscalculation and conflict, addressed a range of bilateral and global issues”, according to the readout from the Department of State.

Meanwhile, the readout from China’s Ministry of Foreign Affairs states that the foreign minister “clarified his solemn position on China’s core concerns, such as the Taiwan issue, stressing that the US should respect them, stop interfering in China’s internal affairs, and stop undermining China’s sovereignty, security, and development interests in the name of competition”.

Blinken’s upcoming visit has raised hopes of a “thaw” in US-China relations, but US officials have emphasized that they do not expect a major breakthrough. Daniel Kritenbrink, a senior US State Department official who visited Beijing last week (see Day 867 update) told reporters in a briefing call that “We’re not going to Beijing with the intent of having some sort of breakthrough or transformation in the way that we deal with one another” and that “We’re coming to Beijing with a realistic, confident approach and a sincere desire to manage our competition in the most responsible way possible”.

Day 868 (June 6, 2023): US Secretary of State to visit China later this month, according to reports.

Several media outlets have reported that US Secretary of State Antony Blinken will visit China in the coming weeks, citing unnamed sources, in what would be a significant step toward improving ties between the US and China. The visit, if it goes ahead, would include meetings with top Chinese officials, “possibly including Xi Jinping”.

Blinken was supposed to visit China in February of this year, but the trip was canceled following the fallout of the so-called “balloon incident”.

Day 867 (June 5, 2023): US State Department official Daniel Kritenbrink in Beijing for meetings with Chinese officials.

Senior US State Department official Daniel Kritenbrink and White House National Security Council’s senior director for China affairs Sarah Beran visited Beijing, where they met with Director-General of the Department of North American and Oceanian Affairs of China’s Ministry of Foreign Affairs Yang Tao and Vice Minister of Foreign Affairs Ma Zhaoxu. US Ambassador to the PRC Nicholas Burns also attended the meetings.

The official readout of the meetings from the Ministry of Foreign Affairs provides little detail, but said that the “two sides had candid, constructive and productive communication on improving bilateral relations and managing differences appropriately in accordance with the common understandings between the two presidents reached in Bali last November,” referencing the meeting between Xi Jinping and Joe Biden at the sidelines of the G20 leaders’ summit.

In addition, the readout said that “China stated its serious position on Taiwan and other major issues of principle. The two sides agreed to maintain communication.

Meanwhile, the White House readout stated that “the two sides exchanged views on the bilateral relationship, cross-Strait issues, channels of communication, and other matters. US officials made clear that the United States would compete vigorously and stand up for US interests and values.”

Day 866 (June 4, 2023): China’s defense minister gives remarks on China’s “New Security Initiative” at the 20th Shangri-La Dialogue.

At the 20th IISS Asia Security Summit: The Shangri-La Dialogue in Singapore, State Councilor and Defense Minister Li Shangfu gave a speech on “China’s New Security Initiative”, in which he spoke about China’s position on security in the Asia-Pacific region and beyond. According to a readout of the remarks, he talked about how “President Xi Jinping proposed a global security initiative, advocating a common, comprehensive, cooperative and sustainable security concept, and contributed Chinese wisdom to addressing international security challenges.”

Meanwhile, highlights of the speech released by the Ministry of Defense state that “China stays committed to the path of peaceful development“ and that “China is ready to work with all other parties to build stronger security and confidence-building systems”. At the same time, it also stated that China “will never hesitate to defend our legitimate rights and interests, let alone sacrificing the nation’s core interests”.

Foreign media have reported that the defense minister stated that a conflict between the US and China would be an “unbearable disaster”.

The speech comes a day after US and Canadian naval vessels traversed the Taiwan strait, which led to a near collision with a Chinese military vessel. The US stated this was a routine transit, but the Chinese military criticized it as a “provocation”.

On Friday, China reportedly turned down a proposed meeting between the US and Chinese defense chiefs.

Day 861 (May 30, 2023): US Treasury Department Sanctions 13 Chinese Entities and Individuals for Alleged Connection with Fentanyl Production.

The US Department of the Treasury (the “Treasury”) announced sanctions on seven Chinese entities and six individuals for allegedly enabling the production of counterfeit pills laced with fentanyl. According to the Treasury’s press releases, these entities and individuals “are directly or indirectly involved in the sale of pill press machines, die molds, and other equipment used to impress counterfeit trade markings of legitimate pharmaceuticals onto illicitly produced pills, often laced with fentanyl, frequently destined for U.S. markets.”

Among the targets were Chinese pill press suppliers Youli Technology Development Co., Yason General Machinery Co. and two of its branch and sister companies, and Tdpmolds, along with a range of individuals affiliated with these companies.

The sanctions mean that US citizens and people in the US (including those transiting within the US) are prohibited from engaging in transactions with these entities unless they have been authorized to do so by the Treasury’s Office of Foreign Asset Control (OFAC).

The spokesperson of the Chinese Embassy in the US stated that “China strongly condemns” the move and that it is “a serious violation of the lawful rights and interests of the companies and individuals concerned”. Regarding the allegations, it called the pretext “fabricated” and stated that “it is widely known that pill press machines and die molds are common commodities with legitimate uses and are widely used in normal industrial production”

Moreover, it stated that “the Chinese government takes a firm stance on counter-narcotics” and that “the US itself is the root cause of its drug problems”.

China and the US have previously collaborated on counternarcotics work, however, China-US counternarcotics cooperation was suspended in August 2022 in retaliation to then-Speaker of the House of Representatives Nancy Pelosi’s visit to the island of Taiwan.

Day 861 (May 30, 2023): China Extends Tariff Exemption on 11th Batch of US Goods.

The Customs Tariff Commission of the State Council has announced it will extend the tariff exemption on a batch of goods that were due to expire on May 31, 2023. The tariffs on 95 goods included in the 11th batch of tariff-exempted US goods will continue to be waived until December 31, 2023. The tariffs on US goods were imposed as a countermeasure to the US Section 301 tariffs on Chinese goods.

Day 861 (May 30, 2023): Foreign Minister Qin Gang Reconfirms Commitment to Opening Up in Meeting with Tesla CEO

Tesla CEO Elon Musk met with China’s Foreign Minister Qin Gang in Beijing on Tuesday during his first trip to China since 2020. According to a brief readout of the meeting published on the Ministry of Foreign Affairs (MFA) website, the meeting revolved around discussions of China-US “decoupling” and China’s market opening, as well as the potential of China’s electric vehicle (EV) market.

Qin Gang stated that “China will continue to unswervingly promote high-level opening up, and is committed to creating a better market-oriented, legalized and internationalized business environment for companies from all over the world, including Tesla.” He also said that “A healthy, stable and constructive Sino-US relationship is not only beneficial to both countries, but also beneficial to the world”, a sentiment which was echoed by Musk, who said that “Tesla opposes ‘decoupling and breaking chains’, and is willing to continue to expand its business in China and share China’s development opportunities”.

China was Tesla’s second-largest market by sales in 2022. Tesla also has a Gigafactory in Shanghai, its first production base outside of the US, and is planning on building another factory in Shanghai to produce its megapack batteries, which is expected to start production in the second quarter of 2024.

However, Tesla’s expansion in China is challenged by a fiercely competitive local EV market, as well as the potential fallout from tense US-China relations.

During his trip to Beijing, Musk also met with Jin Zhuanglong, the Minister of Industry and Information Technology, the Chairman of the Chinese battery maker CATL, as well as other Chinese officials.

Day 856 – 861 (May 25 – 30, 2023): US and Chinese Commerce Officials Meet in Washington D.C.

The Minister of the Chinese Ministry of Commerce (MOFCOM) Wang Wentao met his US counterpart, the Secretary of Commerce Gina Raimondo at the sidelines of the APEC Trade Ministers’ Meeting in Washington D.C. The readouts of the meeting from the Department of Commerce (DOC) and MOFCOM are both scant in detail, but called it a “candid” and “substantive” discussion on issues relating to the US-China commercial relationship”.

The DOC readout said that the discussions centered on the “overall environment in both countries for trade and investment and areas for potential cooperation” and that the Secretary “raised concerns about the recent spate of PRC actions taken against U.S. companies operating in the PRC”, in reference to the recent investigations into foreign consulting companies in China.

Meanwhile, the MOFCOM readout stated that the Chinese side expressed major concerns about the US’ economic and trade policy towards China, semiconductor policy, export control, and foreign investment review”, referring to the US’ semiconductor export ban, trade sanctions, as well as possible plans to limit US investment in China.

This is the latest in a string of meetings between US and Chinese officials, including a meeting between Chinese Diplomat Wang Yi Met with US National Security Advisor Jake Sullivan in Vienna at the beginning of May. These meetings indicate a concerted effort from both sides to rekindle bilateral communication following a fallout over the so-called “spy balloon” which ended in US Secretary of State Antony Blinken canceling a planned trip to China in February.

Wang Wentao was also supposed to meet with US Trade Secretary Katherine Tsai at the APEC forum trade minister meetings in Detroit, however, no information has been released about the possible meeting thus far.

In addition, on Monday, May 29, China reportedly declined a proposed meeting between the US and Chinese defense ministers in Singapore over the weekend. When asked to confirm whether China declined such an invitation in a press conference on May 30, Foreign Ministry Spokesperson Mao Ning stated that “The US is clear about the reason why China-US military dialogue faces difficulties.”

Day 848 (May 17, 2023): Montana becomes first US state to ban TikTok.

The Governor of Montana Greg Gianforte has signed a piece of legislation that will ban TikTok, owned by the Chinese company ByteDance, from operating within the state from January 1, 2024. The signing of Senate Bill 419 will make it illegal for mobile app stores, such as Apple’s App Store and Google Play, from hosting TikTok on their platforms.

Under the law, individuals will not be penalized for having or using TikTok on their personal devices, however, the governor also banned the use of “all social media applications that collect and provide personal information or data to foreign adversaries on government-issued devices, while connected to the state network, or for state business in Montana”.

With the signing of this bill, Montana has become the first US state to ban TikTok for personal use. In late 2022, the Biden Administration banned US government employees from downloading TikTok on official government-issued devices. The Biden Administration has also threatened a nationwide ban on TikTok if ByteDance doesn’t sell its US business.

Despite the signing of the Montana bill, critics have stated that the ban will be difficult to enforce. It is also already subject to legal challenges, including from a group of TikTok creators who claim the ban violates their First Amendment rights.

Day 841 to 842 (May 10 to 11, 2023): Top Chinese Diplomat Wang Yi Met with US National Security Advisor Jake Sullivan in Vienna.

Wang Yi and Jake Sullivan held meetings over the course of two days in Vienna, Austria, as part of “ongoing efforts to maintain open lines of communication and responsibly manage competition”, according to a readout from the White House. Both the White House readout and the readout from China’s Ministry of Foreign Affairs (FMPRC) described the discussions as “candid”, with the FMPRC stating that the two sides had “in-depth, substantive and constructive discussions on ways to remove obstacles in China-US relations and stabilize the relationship from deterioration.”

The FMPRC readout stated that Wang Yi reiterated China’s stance on Taiwan, and that the two sides “exchanged views on the Asia-Pacific situation, Ukraine and other international and regional issues of common concern”, while the White House said that they had “constructive discussions on key issues in the US-China bilateral relationship, global and regional security issues, Russia’s war against Ukraine, and cross-Strait issues […]”.

The meeting is the latest in a concerted effort by the US and China to revive bilateral dialogue following the deterioration of relations in the past few months. Further meetings are expected to be held between Chinese and US officials in the coming months, including a possible visit by US Climate Envoy John Kerry to China, a reported meeting between China’s commerce minister Wang Wentao and US trade representative Katherine Tai, and a possible visit by Secretary of State Antony Blinken at some point this year.

Day 839 (May 8, 2023): Chinese Foreign Minister Meets with US Ambassador to China.

Chinese Foreign Minister Qin Gang has met with the US Ambassador to China Nicholas Burns in Beijing, in the foreign minister’s first meeting with a US official since taking office. According to a tweet posted on the ambassador’s official account, the two sides “discussed challenges in the US-China relationship and the necessity of stabilizing ties and expanding high-level communication.”

According to the meeting readout published by the Chinese Foreign Ministry, Qin Gang stated that “the China-US relationship is of great significance not only for both countries but also for the world” and called for efforts to improve bilateral relations and that “The pressing task is to stabilize the China-US relationship, avoid a spiral decline, and prevent any unexpected incidents between China and the US.”

Moreover, Qin Gang called on the US to “respect China’s bottom line”, which includes respecting the one-China principle regarding Taiwan. Finally, he stated that he “expressed his hope that Ambassador Burns will conduct more engagements and exchanges and engage in thoughtful reflection in China, serve as a bridge between China and the US, and make constructive efforts.”

The foreign minister was set to receive the US Secretary of State Antony Blinken in February, but the trip was canceled following fallout from the so-called “balloon incident”. This meeting was therefore the first high-level meeting between Chinese and US officials since this incident.

Secretary Antony Blinken has hinted that the trip may be rescheduled for sometime later this year, while US Climate Envoy John Kerry recently told media he had been invited to China to meet his Chinese counterpart, which may take place in the “near term”.

Day 834 (May 3, 2023): US Department of Transport increases number of weekly flights operated by Chinese carriers to 12.

The US Department of Transport (USDOT) issued an order stating that it has increased the number of round-trip flights between the US and China that are operated by Chinese airlines from eight to 12 per week.

In August 2020, the USDOT increased the number of round-trip flights that could be operated by Chinese carriers to eight per week, equal to the number operated by US airlines.

The latest order did not increase the number of Chinese airlines that are permitted to operate China-US routes, with airlines still limited to Air China, China Eastern, China Southern, and Xiamen Airlines. The US airlines that currently operate these routes are American Airlines, Delta Air Lines, and United Airlines.

Despite the increase, the number of flights between China and the US remains significantly below pre-pandemic levels. According to data from Cirium, non-stop flights between China and the US were still 94 percent lower than prior to the pandemic at the end of April 2023.

Although airlines are now permitted to operate more flight routes, it is not guaranteed that they will be able to operate at full capacity, as there are several other factors keeping flight numbers down. These include a sluggish recovery of demand from passengers in the US, lower levels of business travel, and pilot staffing issues. Due to this, the cost of flights between China and the US remains significantly higher than they were pre-pandemic, further discouraging travel between the two countries.

Day 834 (May 3, 2023): US Climate Envoy John Kerry may travel to China in the “near term”.

The US Special Presidential Envoy for Climate John Kerry has told Reuters that he has been invited to visit China in the “near term” for talks on the climate crisis. The trip has reportedly been approved by President Joe Biden but has yet to be scheduled.

If the trip goes ahead, the meeting will be the highest-level diplomatic meeting between the two sides since the so-called “balloon incident” which led to the cancellation of a planned trip by the US Secretary of State Antony Blinken. It could therefore be an opportunity to improve the deteriorating US-China relations by providing a platform on which to advance collaboration, according to analysts.

John Kerry last spoke with his Chinese counterpart, China’s Special Envoy on Climate Change Xie Zhenhua, in a virtual meeting in January 2023. This followed a face-to-face meeting at the COP27 meeting in Egypt in November 2022.

Speaking on the potential visit, Kerry reportedly told Reuters that, “The two biggest economies, biggest contributors to that problem need to be able to come together and work to try to help resolve it.”

Possible topics of discussion during the potential visit include plans for China to reduce methane emissions.

In addition to Kerry’s potential visit, Secretary of State Antony Blinken recently told the media that he may try to visit China sometime in 2023, following the cancellation of his previously planned visit in February.

Day 827 (April 26, 2023): AmCham White Paper shows increase in optimism among US firms in China.

The 2023 White Paper published by the American Chamber of Commerce in China (AmCham China), which surveyed 109 member companies on their sentiments toward a range of issues impacting the business environment in China, showed that US firms are increasingly optimistic about China’s economic outlook. 59 percent of respondents gave positive responses when asked about the outlook for the country’s economic recovery, an increase of 22 percentage points from the previous AmCham business climate survey, released in March. Meanwhile, 37 percent of respondents gave a positive response when asked about their business’ profitability outlook in China, an increase of 4 percentage points from the previous survey.

The lifting of COVID-19 restrictions in late 2022 has also had a positive impact on business travel, with 43 percent of respondents stating that their “global or regional executives had already visited China in 2023”, while 31 percent stated that they intend to visit this year.

This reflects the overall recovery of domestic and international travel that has been recorded at the beginning of 2023.

However, US-China relations remain an issue of major concern for US companies in China, with 87 percent of respondents stating that they were pessimistic about bilateral relations. This sentiment has remained prominent since the release of the March survey, in which respondents “cited ‘rising tensions in US-China relations’ as their top challenge”.

Day 821 (April 20, 2023): US Treasury Secretary Janet Yellen calls for a “constructive and fair” relationship with China.

In a speech delivered at Johns Hopkins University’s School of Advanced International Studies on Thursday, US Treasury Secretary Janet Yellen struck a conciliatory tone with regard to the US’ increasingly fraught relationship with China, stating that the US seeks a “constructive and fair economic relationship with China”.

She also stated that the US does not seek “winner-take-all” competition with China, and emphasized that “We do not seek to decouple our economy from China’s. A full separation of our economies would be disastrous […]”.

The Secretary highlighted areas in which the two countries’ innovations can be mutually beneficial. “China has benefited from American inventions like the personal computer and the MRI. In the same way, I believe that new scientific and medical developments from China can benefit Americans and the world – and spur us to undertake even more leading-edge research and innovation.”

However, she also highlighted that this type of competition is only sustainable if it is “fair to both sides”, and alleged that China is engaging in unfair competition, including setting up “barriers to market access for American firms” in China.

At the same time, she also called for collaboration on mutual issues of concern, stating that “It is important that we make progress on global issues regardless of our other disagreements.”

The overall positive tone of this speech is a notable departure from the deteriorating US-China relations witnessed in recent months.

Day 812 (April 12, 2023): US Department of Commerce Imposes Export Controls on 12 More Chinese Companies.

The US Department of Commerce Bureau of Industry and Security (BIS) released a Final Rule in which it added another 28 companies to the Entity List, 12 of which were Chinese.

Under the rule, the Chinese companies were added to the list for allegedly “attempting to evade export controls and acquiring or attempting to acquire U.S.-origin items in support of Russia’s military and/or defense industrial base”.

The companies include 3HC Semiconductors, ETC Electronics, and Maxtronic International.

Day 814 (April 14, 2023): State of Montana votes to completely ban TikTok.

Legislators in the US State of Montana passed a bill (SB0419) that will ban the short video app TikTok, owned by China’s ByteDance, from operating within the state. The bill must first be approved by Governor Greg Gianforte before it is passed into law.

The ban, which would take effect from January 1, 2024, would require all operators of mobile application stores, such as Google and Apple, to remove TikTok in the state of Montana. If the bill is passed, Montana will be the first state in the US to fully ban TikTok.

The new bill comes after the Committee on Foreign Investment in the United States (CFIUS) threatened to ban TikTok completely in the US if Bytedance did not sell its US stake in the app. It also follows the No TikTok on Government Devices Act (S.3455), which was signed into law in December 2022, and bans US government employees from downloading TikTok on official government-issued devices.

Day 785: March 16, 2023 – US Auditors to Reportedly Launch Another Round of On-Site Inspections of Accounting Firms in Hong Kong and Mainland China.

According to a recent report by Reuters, the US Public Company Accounting Oversight Board (PCAOB) will begin another round of audits of accounting firms in Hong Kong and the Chinese mainland representing US-listed Chinese companies as part of its ongoing audit work of foreign companies that are listed on US stock exchanges. Under the Holding Foreign Companies Accountable Act (HFCAA), the Securities Exchange Commission (SEC) can delist a foreign company from an exchange in the US if the PCAOB is not able to audit its requested reports for three consecutive years. Due to clashing legislation in China and the US, many US-listed Chinese companies were unable to allow the PCAOB to audit their operations until an agreement was reached between US and Chinese regulators last year.

In 2022, around 30 PCAOB staff spent nine weeks from September to November conducting on-site inspections and investigations in Hong Kong, which included reviewing “thousands of pages of audit documentation”. The board said it was able to get “unfettered access” to all audit documentation in these inspections, potentially saving some companies from forced delistings.

According to the unnamed Reuters source, the PCAOB will begin conducting on-site audits of “branches of EY, Deloitte, PricewaterhouseCoopers and some other audit firms in both Hong Kong and mainland China” as early as this week.

See our articles on forced delistings here, on the role of the “Big Four” in China here, and on China’s accounting market here.

Day 771: March 2, 2023 – US Commerce Department Adds 28 Chinese Companies to Entity List.

The US Department of Commerce’s Bureau of Industry and Security (BIS) has added 37 new entities to the “Entity List” for export restrictions, of which 28 are Chinese. According to the BIS’ press release, the companies were added to the Entity List because they are “contributing to Russia’s military and/or defense industrial base, supporting PRC military modernization, and facilitating or engaging in human rights abuses in Burma and in the People’s Republic of China”.

The companies that were added to the list include Baoding Giant Import and Export Co., Ltd., BGI Research, BGI Tech Solutions, Rayscience Optoelectronics Innovation Co, and the IT giant Inspur Group. The addition of Inspur to the list is particularly significant as it works closely with large US firms, such as Intel and IBM.

In response to its addition to the list, BGI said in a statement on its website that it was “puzzled” by the decision and that it “does not engage in unethical practices and does not provide gene technology for the surveillance of Uighurs”, as was alleged by the BIS.

Meanwhile, when asked about this news in a regular press conference on March 3, Foreign Ministry Spokesperson Mao Ning said that “China strongly deplores and firmly rejects this” and that “We urge the US to […] stop suppressing Chinese companies under false pretexts, and provide Chinese companies with open, just, and non-discriminatory treatment”.

Day 759: February 18, 2023 – Chinese Foreign Ministry Spokesperson Wang Yi Holds Informal Meeting with US Secretary of State Antony Blinken.

On the sidelines of the Munich Security Conference on Saturday, Chinese Foreign Ministry spokesperson and former foreign minister Wang Yi held an informal meeting with US Secretary of State Antony Blinken to discuss a variety of security issues, including the so-called “balloon incident” and the Russia-Ukraine war.

According to a meeting readout published on the White House website, Blinken called the “balloon incident” an “unacceptable violation of U.S. sovereignty and international law” and said that this “must never again occur”. Meanwhile, a readout published on China’s Ministry of Foreign Affairs website stated that the US’ shooting down of the balloon was “apparently an abuse of the use of force and violation of customary international practice and the International Civil Aviation Covenant”, and that the US’ “high-altitude balloons illegally flew over China multiple times.”

With regard to the Russia-Ukraine conflict, Blinken warned China about “the implications and consequences if China provides material support to Russia or assistance with systemic sanctions evasion.” Meanwhile, the Chinese readout stated that “China is committed to promoting peace talks and has played a constructive role” and that “The China-Russia comprehensive strategic partnership of coordination is built on the basis of non-alliance, non-confrontation and non-targeting of third countries”.

Day 757: February 16, 2023 – China Adds US Defense Companies to Unreliable Entity List.

China’s Ministry of Commerce (MOFCOM) has placed two US defense companies – Lockheed Martin Corporation and Raytheon Missiles & Defense, a subsidiary of Raytheon Technologies – on its List of Unreliable Entities in retaliation for their supply of arms to Taiwan. According to the MOFCOM announcement, the two units were added to the list in order to “safeguard national sovereignty, security and development interests”.

While the companies are on the list, they will be subject to the following measures:

Prohibited from engaging in import and export activities related to China;
Prohibited from making new investments in China;
Senior management personnel are prohibited from entering China;
Senior management personnel in China will be disapproved from or have their work permits, stay, and residence qualifications canceled; and
Are subject to fines of twice the amount of each enterprise’s arms sales contract to Taiwan since the implementation of the Regulations on the Unreliable Entity List.

Due to the limited scope of companies affected – the parent company of Raytheon Missiles & Defense was reportedly not added to the list because it is an import aviation supplier to Chinese airlines – these sanctions have largely been viewed as symbolic rather than a significant escalation of sanctions.

Day 756: February 15, 2023 – China extends tariff exemptions on the 10th batch of US goods.

The Customs Tariff Commission of the State Council has announced it will extend the tariff exemption on a batch of goods that were due to expire on February 16. The tariffs on 124 goods, which were imposed as a countermeasure to the US Section 301 tariffs on Chinese goods, will continue to be suspended until September 15, 2023.

Both the US and China announced extensions to tariff exemptions on certain goods in late 2022.

Day 744: February 3, 2023 – US Secretary of State Antony Blinken postpones planned trip to China amid fallout from Chinese airship, according to media reports.

Amid fallout from a Chinese airship dubbed a “spy balloon” observed flying in US airspace (Montana), several media outlets have reported that the Biden administration has postponed Secretary of State Antony Blinken’s diplomatic visit to China, due to take place on February 5 and 6, citing a State Department official. A statement from a spokesperson from the Chinese Foreign Ministry confirmed that the airship was Chinese but that it is “a civilian airship used for research, mainly meteorological, purposes”. The statement also said that China “regrets the unintended entry of the airship into US airspace”.

Nonetheless, US media have reported that Blinken would postpone the trip as he “did not want the balloon to dominate his meetings with Chinese officials”. The Biden administration has also not confirmed whether the trip will be rescheduled.

Day 721: January 11, 2023 – US House of Representatives Votes to Form a Committee for Competition with China.

The US House of Representatives has voted in favor of forming a new select committee dedicated to competing with China. According to a notice published on the US Congress website, the Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party is authorized “to investigate and submit policy recommendations concerning the status of the economic, technological, and security progress of the Chinese Communist Party and its competition with the United States.”

The resolution to form the committee was passed with overwhelming bipartisan support, with only 65 representatives voting against it, all of whom were Democrats (146 Democrats and 219 Republicans voted in favor).

In a regular press briefing, China’s Foreign Ministry Spokesperson Wang Wenbin stated in response to the news that “We hope the relevant US politicians view China and the China-US relations in an objective and reasonable light, proceed from the US’s own interests and the common interests of China and the US, head toward the same direction with China, and promote the development of the China-US relations based on mutual respect, peaceful coexistence, and win-win cooperation.”

Day 694: December 15, 2022 – US regulators gain access to audit documents of US-listed Chinese companies.

The US Public Company Accounting Oversight Board (PCAOB) announced on Thursday, December 15, that it has successfully gained uncensored access to investigate audit firms in mainland China and Hong Kong for the first time in history, potentially saving hundreds of Chinese companies from forced delisting from US stock exchanges.

According to the board’s announcement, it had determined that it “was able to secure complete access to inspect and investigate audit firms”. A fact sheet released by the board reveals that these audit firms are KPMG Huazhen LLP, headquartered in mainland China, and PricewaterhouseCoopers (PwC), headquartered in Hong Kong. These accounting firms service mainland Chinese and Hong Kong firms listed in the US.

This development does not mean that the companies identified by the Securities Exchange Commission (SEC) for possible delisting are no longer in danger of delisting; it only means they will not be delisted under the Holding Foreign Companies Accountable Act (HFCAA), which enables the SEC to forcibly delist foreign companies from US stock exchanges if the PCAOB cannot access a company’s audit records for three consecutive years. Without this latest breakthrough, many of the companies identified were facing blanket delisting in 2024.

For more information, see our full article on the topic here.

Day 695: December 16, 2022 – US extends tariff exemption on certain Chinese goods.

The United States Trade Commission (USTR) announced it has extended a tariff exemption on 352 Chinese products. The exemption was due to expire at the end of 2022 and has been extended for another nine months, following a previous extension in March 2022.

Day 674: November 25, 2022 – China extends tariff exemption on certain US goods for six months.

The Customs Tariff Commission of China’s State Council has announced that it will extend a tariff exemption on a list of 95 US goods. The tariff exemption, which was set to expire on November 30, 2022, has been extended to May 31, 2023. China has placed tariffs on over US$100 billion worth of US goods in retaliation to the USTR’s Section 301, which placed tariffs on over US$360 billion worth of Chinese goods during the Trump Administration in 2018 and 2019.

Day 664: November 15, 2022 – President Biden and President Xi Hold First Face-to-Face Meeting as Leaders.

On the afternoon of November 14, 2022, US President Joe Biden and Chinese President Xi Jinping held their first face-to-face meeting since Biden took office in early 2021. The three-hour meeting held in the run-up to the G20 Summit in Bali, Indonesia was described by both sides as “in-depth, candid and constructive”, according to the official meeting readout on China’s Ministry of Foreign Affairs (MOFA) website.

Both sides called for increasing cooperation and working together on major issues “such as climate change, global macroeconomic stability including debt relief, health security, and global food security”, according to the official meeting readout published on the White House website.

Both presidents gave remarks at the meeting, which have been transcribed and published on the White House website. In his remarks, Biden stated that “we share a responsibility […] to show that China and the United States can manage our differences, prevent competition from becoming anything ever near conflict, and to find ways to work together on urgent global issues that require our mutual cooperation”. President Xi, meanwhile, stated that “We need to find the right direction for the bilateral relationship going forward and elevate the relationship.”

The meeting touched upon key issues relating to US-China relations, including China’s economic development, Taiwan, and regional security. The MOFA meeting readout states that China takes seriously President Biden’s “five-noes” statement. According to Chinese media reports, the “five-noes” are promises made by President Biden that the US:

Does not seek to change China’s system;
Does not seek to start a cold war with China;
Does not seek to strengthen alliances against China;
Does not support “Taiwan independence”, “two Chinas”, or “One China, One Taiwan”, and has no intention of seeking conflict with China; and
Does not intend to break off ties with China, impede China’s economic development, or contain China.

The MOFA readout also stated that the Taiwan question is “the first red line that must not be crossed in China-U.S. relations.” The White House readout states that the US’ stance on the “one China policy has not changed”, but that “the United States opposes any unilateral changes to the status quo by either side, and the world has an interest in the maintenance of peace and stability in the Taiwan Strait.”

With regard to trade and economic development, the Chinese side criticized US trade policies and warned against decoupling, with the MOFA readout stating that “Starting a trade war or a technology war, building walls and barriers, and pushing for decoupling and severing supply chains run counter to the principles of market economy and undermine international trade rules.” The White House readout, meanwhile, states that “President Biden explained that the United States will continue to compete vigorously with the PRC, including by investing in sources of strength at home and aligning efforts with allies and partners around the world”, but that “this competition should not veer into conflict” and “the United States and China must manage the competition responsibly and maintain open lines of communication.”

The White House readout states that the two leaders have agreed that Secretary of State Antony Blinken will visit China, which has been tentatively planned for early next year.

Day 663: November 14, 2022 – President Biden and President Xi Prepare to Meet in Bali Ahead of G20 Summit.

President Xi Jinping will meet with President Joe Biden on Monday, November 14, ahead of the G20 Summit in Bali, Indonesia, which is set to start on November 15. According to media reports, Biden will seek to set “red lines” for the US’ relationship with China, which for the US may include maintaining freedom of navigation in the South China Sea and preventing a military invasion of Taiwan. Biden has also previously stated that he will seek to maintain open lines of communication with China on important issues.

Throughout the summit and the 29th APEC Economic Leaders’ Meeting in Bangkok, Thailand, which takes place from November 17 to 19, President Xi Jinping will also be holding meetings with French President Emmanuel Macron, Senegalese President Macky Sall, and Argentine President Alberto Fernández, among others.

Day 625 to 631: October 7 – 13, 2022: US Department of Commerce implements new export controls on advanced computing and semiconductors to China.

The US Department of Commerce has implemented sweeping new export controls that will require companies to receive a license to export US-made advanced computing and semiconductor products to China. According to a release issued by the Bureau of Industry and Security. The release states that the purpose of the export controls is to “protect U.S. national security and foreign policy interests” and will “restrict the People’s Republic of China’s (PRC’s) ability to both purchase and manufacture certain high-end chips used in military applications”.

The export controls will affect both US companies and companies from a third-party country that sells US-made items to China. Moreover, it also “restricts the ability of U.S. persons to support the development, or production, of ICs [integrated circuits] at certain PRC-located semiconductor fabrication “facilities” without a license”.

China’s Ministry of Commerce (MOFCOM) since condemned the move, with a spokesperson for the body stating that “The actions of the US side not only affect the legitimate rights and interests of Chinese companies but also damage the legitimate business interests of US export companies” and added that “The United States should immediately stop its wrongdoing and give fair treatment to companies from all over the world, including Chinese companies”.

In response to the ruling, ASML Holding, a maker of equipment for producing semiconductors, has told US employees to stop servicing Chinese customers, according to a report by Bloomberg. Meanwhile, leading Taiwanese chipmaker TSMC has been granted a one-year license to continue using US-made components for its operations in China.

Day 611: September 23, 2022 – China Foreign Minister meets with US counterpart at sidelines of UN General Assembly.

China’s Foreign Minister Wang Yi met with US counterpart Secretary of State Antony Blinken at the 77th UN General Assembly in New York on Friday. Their last meeting was at the sidelines of the G20 Foreign Minister’s Meeting on July 9. According to a readout published on the Chinese Ministry of Foreign Affairs website, Wang Yi called for “steering bilateral relations back on the track of steady development”, while the White House readout stated that Blinken “discussed the need to maintain open lines of communication and responsibly manage the U.S.-PRC relationship”. Wang Yi also warned that the US should “stop hollowing out or distorting the one-China policy”, ” stop interfering in China’s internal affairs or undermine China’s legitimate interests”, and called on the US to remove the additional tariffs imposed on China and “stop the unilateral sanctions on Chinese businesses”. Meanwhile, Blinken stated that the US is “committed to maintaining peace and stability across the Taiwan Strait, consistent with [the] longstanding one China policy”. Speaking on the Russia-Ukraine conflict, the secretary also warned China of “the implications if the PRC were to provide support to Moscow’s invasion of a sovereign state.”

Day 583: August 26, 2022 – US and China securities regulators reach agreement on auditing of US-listed Chinese companies.

The US’ Public Company Accounting Oversight Board (PCAOB) has reached an agreement with the China Securities Regulatory Commission (CSRC) and Ministry of Finance (MOF). The agreement marks the first step in allowing the PBAOC to audit Chinese companies listed on US stock exchanges, as required under the Holding Foreign Companies Accountable Act (HFCAA). A long-standing impasse between the two countries’ regulatory bodies has already led to several delistings as audit requirements under the HFCAA directly clashed with China’s data security regulations prohibiting inspections of Chinese companies by foreign countries.

According to a notice published on the CSRC website, the agreement “establishes a supervision cooperation mechanism for the two sides to carry out daily inspections and law enforcement cooperation on accounting firms within the scope of mutual supervision” and “lays a foundation for the next step to carry out equal and efficient cooperation between the two parties”. Meanwhile, Chair of the PCAOB Erica Y. Williams stated that “On paper, the agreement signed today grants the PCAOB complete access to the audit work papers, audit personnel, and other information we need to inspect and investigate any firm we choose”.

The agreement has led to cautious optimism among investors, with shares of major Chinese tech stocks rising 6 percent after the announcement. However, analysts have expressed skepticism over the viability of the agreement, as the two sides appear to have different understandings of the scope of the agreement. For instance, the PCAOB chair said that, under the agreement, “The PCAOB has sole discretion to select the firms, audit engagements and potential violations it inspects and investigates – without consultation with, nor input from, Chinese authorities.” Meanwhile, in a media Q&A, the CSRC stated that “The audit working papers and other documents that the US side must review will be retrieved and provided with the assistance of the Chinese regulatory agency.” These contradictions indicate that the implementation of the agreement will be difficult, and further cooperation is required to overcome the impasse. It is therefore likely that more companies will be required to delist before a workable solution is found.

Day 580: August 23, 2022 – the US adds another seven China entities to its export control list

On Tuesday, August 23, 2022, the US Commerce Department, through its Bureau of Industry and Security (BIS), issued a final rule that added seven Chinese space, aerospace, and related technology entities to the Entity List and severely restricted their access to commodities, software, and technologies subject to the Export Administration Regulation (EAR).

The seven entities newly added to the Entity List are:

China Aerospace Science and Technology Corporation (CASC) 9th Academy 771 Research Institute;
China Aerospace Science and Technology Corporation (CASC) 9th Academy 772 Research Institute;
China Academy of Space Technology 502 Research Institute;
China Academy of Space Technology 513 Research Institute;
China Electronics Technology Group Corporation 43 Research Institute;
China Electronics Technology Group Corporation 58 Research Institute; and
Zhuhai Orbita Control Systems.

The rule shall take effect from August 24, 2022.

With this action, the Commerce Department will have approximately 600 Chinese entities on the Entity List – more than 110 of which have been added since the start of the Biden Administration.

Day 562: August 5, 2022 – China cancels and suspends several US-China talks and areas of cooperation, sanctions Nancy Pelosi.

In a notice published on August 5, the Foreign Ministry announced it has canceled and suspended eight talks and areas of cooperation with the US: The China-U.S. Theater Commanders Talk, China-US Defense Policy Coordination Talks (DPCT), China-US Military Maritime Consultative Agreement (MMCA) meetings, China-US cooperation on the repatriation of illegal immigrants, China-US cooperation on legal assistance in criminal matters, China-US cooperation against transnational crimes, China-US counternarcotics cooperation, and China-US talks on climate change. The announcement came shortly after a decision on the same day to sanction Nancy Pelosi and her immediate family members, although no details on the nature of the sanctions have been revealed. The measures have been implemented in direct response to Speaker of the US House of Representatives Nancy Pelosi’s visit to Taiwan, which was “in disregard of China’s strong opposition and serious representations”, according to the Foreign Ministry.

Day 559: August 2, 2022 – Speaker Pelosi arrives in Taiwan prompting military drills.

Taiwanese media have confirmed that Speaker of the US House of Representatives Nancy Pelosi arrived at Songshan Airport in Taipei just after 10:40 pm local time. She is scheduled to meet with Tsai Ing-wen on Wednesday, in what will be the highest-level US official to visit the island in 25 years. In a Washington Post op-ed that went live shortly after her plane landed, Pelosi wrote that “our congressional delegation’s visit should be seen as an unequivocal statement that America stands with Taiwan” but that it “in no way contradicts the long-standing one-China policy, guided by the Taiwan Relations Act of 1979, the US-China Joint Communiques and the Six Assurances.” Shi Yi, a spokesperson for the Eastern Theater Command, said in a statement that the Chinese People’s Liberation Army (PLA) will conduct a series of joint military operations in the waters and airspace surrounding Taiwan, including joint air and sea exercises in the sea and airspaces of the northern, southwestern, and southeastern Taiwan islands, firing long-range live ammunition in the Taiwan Strait, and organizing regular-guided fire tests in the island’s eastern waters. He also stated that the response was “a solemn deterrent against the recent major escalation of the negative actions by the United States on the Taiwan issue”.

Day 554: July 28, 2022 – Biden and Xi hold two-hour call.

On Thursday, President Biden and President Xi held a two-hour call, in which they discussed cooperation between the two countries and issues surrounding Taiwan and Ukraine, among other matters. The call was the first direct contact between the leaders since their last call on March 18. According to the Chinese readout of the meeting, Xi Jinping told Biden that “China and the US should maintain communication on major issues such as macroeconomic policy coordination, maintaining the stability of global industrial and supply chains, and safeguarding global energy and food security.” The White House readout wrote that “The call was a part of the Biden Administration’s efforts to maintain and deepen lines of communication between the United States and the PRC and responsibly manage our differences and work together where our interests align.” On Taiwan, President Xi said that the US should not “play with fire” and that the US should abide by the One China Policy and implement the three Sino-US joint communiques. The White House readout, meanwhile, stated that “President Biden underscored that the United States policy has not changed and that the United States strongly opposes unilateral efforts to change the status quo or undermine peace and stability across the Taiwan Strait.” The call comes ahead of a planned visit by Speaker of the US House of Representatives Nancy Pelosi to Taiwan next month, which has triggered a strong response from China. It is as yet uncertain whether the visit will go ahead.

Day 546: July 20, 2022 – Biden says he will hold meeting with Xi by the end of July.

President Biden told reporters on Wednesday, July 20 that he intends to meet with President Xi “within the next 10 days”, as China-US relations grow increasingly tense. If it goes ahead as planned, the meeting will be the first the two have held in four months. On the same day, Chinese Ambassador to the US Qin Gang, speaking at the Aspen Security Forum in Colorado, criticized the US’ increasingly close ties with Taiwan, stating that “The United States is […] blurring out the “One China’ policy”. Officials from the Biden administration have repeatedly said that the US’ stance on the One China policy has not changed. Speaking at a routine press briefing a day earlier, Foreign Ministry Spokesperson Zhao Lijian also criticized a planned trip by Speaker of the US House of Representatives Nancy Pelosi to Taiwan next month, saying that “We firmly oppose any form of official interaction between the US and the Taiwan region” and that “China will take strong and resolute measures to safeguard its sovereignty and territorial integrity” should the visit go ahead and the US continue “creating factors that could lead to tensions in the Taiwan Strait”.

Day 517: June 21, 2022 – US ban on Xinjiang imports takes effect.

The Uyghur Forced Labor Prevention Act (UFLPA), which was passed in December 2021, takes effect today. The UFLPA bans the import of products made in part or wholly in Xinjiang unless the US Customs and Border Protection agency can certify that the products are not made with forced labor.

The high-priority sectors for enforcement of the UFLPA are cotton, tomatoes, and polysilicon. This means that fashion and textiles will be one of the hardest-hit sectors.

When asked about the issue of forced labor in Xinjiang at a press briefing on June 15, 2022, Foreign Ministry Spokesperson Wang Wenbin said that “Such acts of presumption of guilt runs counter to the basic legal principle of presumption of innocence” and that “the allegation of “forced labor” is nothing but a pretext used by the US side in an effort to seek political manipulation for the sheer purpose of destabilizing Xinjiang and containing China’s development”.

Day 509: June 13, 2022 – US security advisor and top Chinese diplomat meet in Luxembourg.

US Security Advisor Jake Sullivan and top Chinese diplomat Yang Jiechi met in Luxembourg, where they had a “candid, in-depth and constructive communication and exchanges on China-U.S. relations and other issues of common concern”, according to a readout published on the Foreign Ministry of the PRC (FMPRC) website. It was the second in-person meeting and the third dialogue that the two have held in 2022. According to the FMPRC readout, the two reiterated familiar talking points, with Yang pointing out that US President Joe Biden had assured China that the US does not support Taiwan independence and is not seeking to start a Cold War with China. He also stated that “China firmly opposes the definition of China-U.S. relations by competition”, in reference to a speech by US Secretary of State Antony Blinken on May 26, in which he asserted that the two countries were in political competition with one another to secure the future. The readout of the meeting on the White House website was brief, but stated that “Mr. Sullivan underscored the importance of maintaining open lines of communication to manage competition between our two countries.”

Day 490: May 25, 2022 – Chinese and US climate envoys vow to cooperate on climate issues.

On Tuesday, May 24, 2022, Chinese climate envoy Xie Zhenhua met with US counterpart John Kerry at the 2022 World Economic Forum (WEF) in Davos to discuss cooperation on tackling climate change. The two envoys found common ground on the issue, with both envoys calling for more urgent action. John Kerry stated that “Emissions went up in 2021 by 6%, while coal usage expanded by 9%. This is unacceptable” while Xie Zhenhua called for more to be done to meet pledges, stating that “Action, now, is critical” and “We have to turn our pledges into concrete actions”. John Kerry also stated that the two countries were close to agreeing on the structure of a group from both countries to reduce greenhouse gas emissions. John Kerry also suggested doing more to assist each other in meeting climate pledges, saying that “Maybe we can help with technology […] to help China move faster. Maybe China could help us better understand some things we could do better.”

Day 489: May 24, 2022 – US President Biden indicates a willingness to defend Taiwan militarily.

At a press conference in Tokyo on Monday, May 23, US President Joe Biden stated that he would be willing to defend Taiwan militarily when asked by media, but added that “My expectation is it will not happen, it will not be attempted”. In the response to the remarks, Foreign Ministry Spokesperson Wang Wenbin stated in a press briefing that “China expresses strong dissatisfaction and firm opposition to the remarks by the US side” and “We urge the US side to abide by the one-China principle and the stipulations in the three China-US joint communiqués”. On Tuesday, May 24, President Biden then stated at the “Quad Leaders’ Summit” between leaders from Japan, India, and Australia that his statement did not amount to a change in the US’ stance or policy with regard to Taiwan.

Day 483: May 18, 2022 – US security advisor and top Chinese diplomat hold phone call in follow-up to Rome meeting.

On Wednesday, May 18, US Security Advisor Jake Sullivan and top Chinese diplomat Yang Jiechi held a phone conversation, in which Yang stated that “the United States has taken a series of wrong words and deeds that interfere in China’s internal affairs and harm China’s interests”, according to Chinese state media. He also stated that the US “cooperate with China, properly manage differences between the two sides, and do more constructive things to bring bilateral relations back to the right track of sound and steady development”. The readout of the conversation posted on the White House website was very brief, stating that the conversation was a follow-up to their March 14 meeting in Rome, that it “focused on regional security issues and nonproliferation”, and that the two “also discussed Russia’s war against Ukraine and specific issues in US-China relations”.

Day 476: May 11, 2022 – US removes key language on its stance on Taiwan.

Updates to the State Department’s fact sheet on Taiwan, released on May 5, 2022, committed key language on the US’ official stance on Taiwan, including that the US “[acknowledges] the Chinese position that there is but one China and Taiwan is a part of China” and that it “does not support Taiwan independence”. However, it still includes the sentence “The United States has a longstanding one China policy, which is guided by the Taiwan Relations Act, the three US-China Joint Communiques, and the Six Assurances.” When inquired by the media at a regular press briefing on May 10, Foreign Ministry Spokesperson Zhao Lijian called the amended document “a trick to obscure and hollow out the one-China principle” and that ” the attempt to change the status quo across the Taiwan Strait will hurt the US itself”. Following this, at a press briefing on May 11, the US Department of State Spokesperson stated that “our policy towards Taiwan has not changed” and “we do not support Taiwan independence”.

Day 476: May 11, 2022 – Joe Biden says US may lift tariffs on Chinese goods to combat inflation.

In a speech on Tuesday, May 10, President Joe Biden stated that he would consider removing tariffs on Chinese goods in an effort to reduce the price of goods in the US. The statement comes a week after the US Trade Representative initiated a statutory procedure to review US tariffs on Chinese goods in the lead-up to the four-year anniversary of the tariffs being implemented. In a routine press briefing on Wednesday 11 May, Foreign Minister Zhao Lijian urged the US to remove the tariffs, stating that “I think it’s time for the US administration to reconsider and to cancel it as early as possible”. He also said that the tariffs had been detrimental to the US jobs and the economy.

Day 468: May 3, 2022 – USTR signals it may lift trade tariffs on some Chinese goods.

According to a notice published on the website of the Office of the US Trade Representative (USTR) on May 3, the US may lift tariffs on some Chinese goods on the four-year anniversary of the tariffs being instated. The notice puts in motion a standard legal requirement for the USTR to review tariff actions four years after they were instated. The four-year anniversary of two tariff actions, which took effect on July 6, 2018 and August 23, 2018 under Trump, will occur this summer. The notice called on representatives of domestic industries that benefit from trade tariffs on Chinese goods to submit requests for the continuation of the tariffs during two dockets open from May 7 to July 5 and July 6 to August 22, respectively. If a request is submitted to the USTR, it will commence a review of the tariff to assess whether it will be extended. If no request is submitted for a given tariff, then it will presumably be lifted, but not official statement has been made on the timeline or certainty of this happening.

Day 456: April 21, 2022 – U.S. Pentagon chief speaks to Chinese defense minister for the first time under Biden.

On Wednesday, April 20, U.S. Defense Secretary Lloyd J. Austin III spoke to Chinese Minister of National Defense General Wei Fenghe for the first time under the Biden Administration. The readouts of the U.S. Department of Defense (DoD) and China’s State Council both provided scant details of the discussion. According to the DoD, the call was a “follow-up to the recent call between President Biden and Xi Jinping” and stated simply that the two “discussed U.S.-PRC defense relations, regional security issues, and Russia’s unprovoked invasion of Ukraine”. Meanwhile, the State Council’s readout wrote that “China hopes to establish sound and stable major-country relations with the United States” but that “The United States should not underestimate China’s determination and capability”. With regards to Taiwan, it said that “the Chinese military will resolutely safeguard national sovereignty, security and territorial integrity”. The U.S. also reiterated its adherence to the One China policy. Ukraine was only briefly mentioned, with the readout stating that the two sides “exchanged views” on the issue.

Day 429: March 25, 2022 – SEC adds Weibo to list of Chinese companies for possible delisting from US stock exchanges

The US Securities and Exchange Commission (SEC) has added the social media company Sina Weibo to a list of companies for possible delisting under the Holding Foreign Companies Accountable Act (HFCAA). The addition follows the publication on March 10 of a provisional list of five Chinese companies for possible delisting from US stock exchanges (see Day 414 – 420 update).

Day 427: March 23, 2022 – USTR reinstates tariff exemptions on some Chinese goods

The Office of the United States Trade Representative (USTR) announced that it would reinstate tariff exemptions on 352 Chinese products. The tariff exclusions had on these products had expired in 2019 and 2020, and were reinstated after consultation with US agencies and the public. A total of 549 products were initially up for consideration for reinstatement of tariff exemptions, but only products that met certain criteria were ultimately chosen for the exclusions.

According to the notice on the exclusions posted on the USTR website, the public was invited to comment on whether the products or similar products can be sourced from other countries, whether there have been any changes to the product supply chain or industry development, whether importers had made any effort to source the product from elsewhere, and whether the product could be produced in the US.

The reinstatement of the tariff exemptions, therefore, suggests that the products can currently not be sourced or produced from countries other than China. The list covers a wide range of products, including industrial chemicals and machinery, auto parts, textiles, consumer electronics, and foodstuffs.

Day 422: March 18, 2022 – Xi and Biden hold first conference call since Russia-Ukraine war outbreak

President Xi and President Biden spoke on a conference call on Friday evening (March 18), the first direct communication between the two leaders since their virtual summit in November 2021 and the first talk since the outbreak of the Russia-Ukraine war.

There are relatively few concrete details on what was discussed in the meeting, and the information provided by the US and Chinese sides is markedly different in tone and focus. However, both sides agreed the meeting revolved in large around the crisis in Ukraine, while also touching on the topic of Taiwan.

According to the readout on the White House website, in the meeting, President Biden “described the implications and consequences if China provides material support to Russia as it conducts brutal attacks against Ukrainian cities and civilians”. The readout did not provide details on what the consequences would be, however, in a routine press meeting held after the meeting, White House Press Secretary Jen Psaki told reporters that “sanctions are certainly one tool in the toolbox”.

The readout on the Ministry of Foreign Affairs of China (FMPRC) website, on the other hand, stated that “China stands for peace and opposes war” and that “China has put forward a six-point initiative on the humanitarian situation in Ukraine, and is ready to provide further humanitarian assistance to Ukraine and other affected countries.”

The readout did not mention Biden’s threat of “consequences”, but wrote that “sweeping and indiscriminate sanctions would only make the people suffer. If further escalated, they could trigger serious crises in global economy and trade, finance, energy, food, and industrial and supply chains […]”

On Taiwan, the White House readout stated that “The President reiterated that U.S. policy on Taiwan has not changed, and emphasized that the United States continues to oppose any unilateral changes to the status quo”. Meanwhile, the FMPRC wrote that “Biden reiterated that the US does not seek a new Cold War with China; it does not aim to change China’s system; the revitalization of its alliances is not targeted at China; the US does not support “Taiwan independence”; and it has no intention to seek a conflict with China”.

Both readouts stated that the presidents had each tasked their teams to “follow up” on the conversation, indicating more talks ahead.

Day 414 – 420: March 10 to 16, 2022 – SEC releases list of five Chinese companies for possible delisting from US stock markets

On March, 10, the US Securities and Exchange Commission (SEC), the securities regulator, published a provisional list of issuers identified under the Holding Foreign Companies Accountable Act (HFCAA).

Passed in December 2020, the HFCAA enables the SEC to prohibit the trading of the securities of foreign companies listed on US stock exchanges if the company is found to be unable to submit to an audit by the Public Company Accounting Oversight Board (PBAOC) due to legislation in their country of origin. The HFCAA also requires companies to declare whether they are owned by a foreign government.

Chinese law prohibits companies from disclosing audits to the PBAOC, leaving US-listed Chinese companies stuck in the crossfire of clashing US and Chinese legislation.

The five companies on the list are:

BeiGene
Yum China
Zai Lab
ACM Research
HUTCHMED

Under the HFCAA, companies will be delisted if they fail to submit an audit for three years in a row, meaning that the above-listed companies will not be delisted until 2024.

In response to the announcement, the China Securities Regulatory Commission (CSRC) stated, “We respect foreign regulators strengthening the supervising accounting firms […] but firmly oppose some powers’ use of the politicization of securities supervision.”

However, Chinese regulators have since indicated they will work with US regulators to resolve the issues surrounding the audit of US-listed Chinese companies. In a meeting of the Financial Stability and Development Committee (FSDC) on March 16, Vice Premier Liu He said that the US and Chinese regulatory agencies have maintained “good communication” and are working on forming a specific cooperation plan.

Day 405: March 1, 2022 – The United States Trade Representative (USTR) doubles down on competition with China in annual report

The United States Trade Representative (USTR) has said that it will realign its trade policies toward China in its 2022 Trade Policy Agenda and 2021 Annual Report, which details the work the organization will do to implement the Biden Administration’s trade policies.

Among a raft of other trade policy goals, the report took aim at China, saying that “We must recognize that China, as a large, non-market economy, has uniquely distorted global trade through its economic policies and practices, causing harm to U.S. production, investment, and even consumption” and that there is “urgent need for reform”.

The report did not provide specific details on policy measures for trade with China but stated that the U.S. would renew engagement with partners and allies “to address shared challenges” with regard to China. The report strongly suggests the U.S. will continue to implement policies to increase its competitiveness with China and use its influence on the international stage to urge other countries to do the same.

At the same time, there are indications that more trade tariffs may not be the preferred policy tool, with the report saying that “We are also mindful that rash response measures can create vulnerabilities of their own. The Biden Administration’s approach to China is and will continue to be deliberative, with a focus on the long term.”

Day 398: February 22, 2022 – Chinese Foreign Minister Wang Yi clarifies China’s position on the Ukraine-Russia crisis at Munich Security Conference

On Saturday, February 20, 2022, Chinese Foreign Minister Wang Yi spoke via videolink at the 58th Munich Security Conference. Wang Yi clarified that China supports the national sovereignty of all countries, including Ukraine.

As reported by the SCMP, Wang Yi said that “All countries’ sovereignty, independence and territorial integrity must be safeguarded because these are the basic principles in international relations established through the United Nations Constitution.” However, Wang Yi also criticized Nato, stating that “If Nato keeps expanding eastward, is it conducive to maintaining peace and stability in Europe?”

Wang has previously called for diplomacy, stating that “All parties should work for the comprehensive resolution of the Ukraine crisis […] through dialogue and negotiation.”

China has accused the US and other Western nations of escalating the situation in its response to the Ukraine-Russia crisis. At a press conference on February 16, Foreign Ministry Spokesperson Wang Wenbin said that “the US has been playing up the threat of war and creating an air of tension” and that “persistent hyping and dissemination of disinformation by some in the US and the West that has added more turbulence and uncertainty to the world […]”

Key takeaway: Despite warming China-Russian relations in recent years, it is clear that China will not support Russia in a military invasion of Ukraine, given that it crosses China’s red line on national sovereignty and risks fraying relations with the EU.

Day 383: February 7, 2022 – US adds 33 Chinese entities to its “unverified list”

The US Commerce Department’s Bureau of Industry and Security (BIS) added 33 Chinese entities to the Unverified List (UVL). Listed entities will face tougher rules on receiving shipments from US exporters.

Most entities being listed on the UVL are high-tech manufacturers, including those producing laser components and pharmaceuticals, government research labs, and universities.

The Chinese entities being flagged by the UVL overlap with those on the so-called Entity List and “military end-user” list, which include Hytera Communication Group (a supplier of professional mobile radio systems, also known as walkie-talkies) and the Southern University of Science and Technology in Shenzhen, according to SCMP.

Day 381: February 5, 2022 – US House of Representatives passes America Competes Act

The US House of Representatives passed the America Competes Act, an extensive piece of legislation that aims to strengthen the US’s competitive edge over China. Among other issues, the bill outlines provisions for the US to strengthen ties with Taiwan, further implement sanctions on officials accused of committing atrocities in Xinjiang province, and increase scrutiny and review of Chinese companies that have “contributed to the repression of religious and ethnic minorities within the PRC”.

The legislation passed with a vote of 222-210, with the vote split mostly along party lines. A similar bill called the US Innovation and Competition Act was passed by the Senate in June 2021 with much higher bipartisan support. The House and the Senate will now deliberate the two bills before a final bill can be reconciled and sent to the president to sign into law. Government insiders and analysts have said that the bill is unlikely to pass in its current form due to the inclusion of partisan issues, such as allocation of funds for climate change, and it is likely to undergo a series of revisions before being sent to the Senate.

Day 335: December 21, 2021 – China sanctions four members of a US government commission on religious freedom

China announced to impose reciprocal sanctions on four members (the chairwoman Nadine Maenza, vice-chairman Nury Turkel, and two commissioners Anurima Bhargava and James Carr) of the US Commission on International Religious Freedom, in response to the US sanctions on four Chinese officials over alleged Xinjiang human right violations (see December 10, 2021 update).

The countermeasures include banning the four from entering China (including Hong Kong and Macao), freezing their assets in China, and prohibiting Chinese citizens and institutions from dealing with them.

Day 334: December 20, 2021 – US sanctions five more Hong Kong-based Chinese officials

The US state department and treasury department have sanctioned five Chinese officials – Chen Dong, Lu Xinning, Tan Tieniu, He Jing, and Yin Zhonghua – all deputy directors in the Liaison Office of the Central People’s Government in Hong Kong, adding to a list of other officials with the same title in the liaison office, who were sanctioned earlier this year.

Day 330: December 16, 2021 – US commerce department adds 34 more Chinese entities on its entity list

The US Department of Commerce announced that it had added 34 Chinese entities and research institutes to the Entity List for their “support of China’s military modernization” or being “a part of a network used to supply or attempt to supply Iran with US-origin items”.

The 34 entities include China’s Academy of Military Medical Sciences and 11 of its research institutes, as well as 22 corporate entities including several semiconductor companies. These entities include Shanghai Aisinochip Electronics Technology Co., Ltd. (a leading manufacturer of security control chips), Changsha Jingjia Microelectronics Co., Ltd. (the first Chinese manufacturer of graphics processing units), and Shaanxi Reactor Microelectronics Co., Ltd. (a designer of high-speed power semiconductors).

Some newly added firms are affiliates of companies that are already on the Entity List, including Hikmicro, a subsidiary of Hikvision, which was on the list in 2019.

Day 330: December 16, 2021 – US treasury department blacklists eight Chinese companies

The US Treasury Department has placed eight Chinese technology firms, including top drone maker SZ DJI Technology Co., Ltd., on the investment blacklist for their alleged support of the “biometric surveillance and tracking of ethnic and religious minorities in China, particularly the predominantly Muslim Uyghur minority in Xinjiang”.

The other entities blacklisted are Cloudwalk Technology Co., Ltd.; Dawning Information Industry Co., Ltd.; Leon Technology Company Limited; Megvii Technology Limited; Netposa Technologies Limited; Xiamen Meiya Pico Information Co., Ltd.; and Yitu Limited.

Day 324: December 10, 2021 – China’s top AI firm lands on US’s investment blacklist

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has labeled SenseTime Group Limited, a Chinese AI company specialized in facial recognition software, as a Chinese “Military-Industrial Complex Company” and has banned American investors from buying and selling its shares. The US Treasury Department said that SenseTime was sanctioned due to its technology plays in enabling human rights abuses. The sanction against SenseTime is part of a package of US sanctions against a number of countries to mark Human Rights Day.

SenseTime later announced that it would delay its Hong Kong IPO, where it had planned to raise up to US$767 million. In a brief statement, the company argued that the accusations were “unfounded” and reflected a “fundamental perception” of the company.

Day 324: December 10, 2021 – US sanctions four seniors Chinese officials in Xinjiang

The US state department has imposed sanctions on four additional Chinese officials on the Human Rights Day for their involvement in China’s policies in Xinjiang.

The four officials are Shohrat Zakir and Erken Tuniyaz (respectively the former and current chairman of Xinjiang’s regional government – both ethnic Uygurs), Chen Mingguo （Xinjiang’s police chief), and Hu Lianhe (formerly of the United Front Work Department, the Communist Party’s organ for courting social elites outside the party). Shohrat Zakir and Erken Tuniyaz are also designated by the US treasury department under the Global Magnitsky sanctions program.

Day 322: December 8, 2021 – US bans all imports from China’s Xinjiang

The US House of Representatives has passed the Uyghur Forced Labor Prevention Act to ban all imports from China’s Xinjiang region over concerns about alleged forced labor. The legislation will be sent to the White House for President Joe Biden to sign it into law.

The bill was passed by the US Senate earlier on July 14 (See Day 175 update). The House of Representatives passed a final iteration of the text, which reconciled key differences between House and Senate. The new version keeps provision creating a “rebuttable presumption” – assuming all goods sourced wholly or in part from Xinjiang are tainted with forced labor, unless “clear and convincing evidence” can be provided otherwise.

Day 320: December 6, 2021 – US diplomats and officials to boycott Beijing Olympics

The Biden administration will not send any diplomatic or official representatives to Beijing 22 Winter Olympics and Paralympic Games, citing human rights concerns, the White House press secretary Jen Psaki announced at a news briefing. US athletes will still be allowed to participate.

China Foreign Ministry spokesman Zhao Lijian said China would take “resolute countermeasures” if the boycott stands, arguing against “politicizing sports”.

Day 316: December 2, 2021 – US finalizes rules enabling it to delist Chinese firms

The US Securities and Exchange Commission (SEC) has adopted amendments to finalize the rule implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act (HFCAA).

The law allows the SEC to ban a foreign company from trading and delist the company from an exchange if the US Public Company Accounting Oversight Board (PCAOB) is not able to audit its requested reports for three consecutive years. According to the SEC chair Gary Gensler, more than 50 foreign jurisdictions have worked with the PCAOB to allow inspections, and China and Hong Kong are the only two jurisdictions that refuse to allow the inspections.

The new rule advances a process that could lead more than 200 companies to be kicked off US exchanges and could make some Chinese firms less attractive to investors. It also requires enhanced disclosure from Chinese firms listing in the US via a variable interest entity (VIE). Chinese and other foreign firms are required to declare whether they’re owned or controlled by any foreign government.

Day 308: November 24, 2021 – US blacklists Chinese quantum computing companies

The US has placed a dozen more Chinese entities on the Commerce Department’s blacklist, known as the Entity List, citing national security and foreign policy concerns.

Eight Chinese technology entities were added to the list for alleged “quantum computing efforts that support military applications”. Some other Chinese firms were added for their contributions to “Pakistan’s unsafeguarded nuclear activities or ballistic missile program”.

In total, 27 entities and individuals located in China, Pakistan, Russia, Japan, and Singapore were added to the Entity List on November 24. US businesses are banned from selling materials and equipment to the listed foreign entities.

Day 300: November 16, 2021 – US, China relax visa restrictions on each other’s journalists

China and the US have announced easing of restrictions on access for journalists from each other’s countries, according to Chinese state media and the US State Department. The consensus was reached before a virtual summit between Biden and Xi.

Previously, Washington decided to classify Chinese state media organizations, including Xinhua News Agency and the China Global Television Network (CGTN), as “foreign missions”, allowing tighter control to be exercised over five Chinese outlets. Washington also slashed the number of Chinese nationals allowed to work at the US offices of major Chinese state-owned media and limited their authorized stay to 90 days, with an option to extend.

In the tit-for-tat row, China expelled 13 US journalists from major publications like the New York Times, the Washington Post, and the Wall Street Journal, and introduced new visa restrictions on some US media companies.

Day 299: November 15, 2021 – Biden and Xi kick off their first virtual summit

US President Joe Biden and Chinese President Xi Jinping had their first virtual meeting on Monday evening US time (Tuesday morning China time). The meeting, which lasted more than three and a half hours, marked a conscious effort to smoothen US-China relations.

Statements released by both sides indicate that the two presidents discussed a wide range of issues, including their complex bilateral relations, their stances on Taiwan, and views on health security, climate crisis, global energy supplies, and key regional challenges in North Korea, Afghanistan, and Iran.

According to the readout by the White House, President Biden emphasized his prioritizing far-reaching investments at home while also aligning with US allies abroad to take on global challenges. Biden, as expected, raised concerns over Xinjiang, Tibet, Hong Kong, and Taiwan. However, he added: [the US] “remains committed to the ‘one China’ policy, guided by the Taiwan Relations Act, the three Joint Communiques, and the Six Assurances… the United States strongly opposes unilateral efforts to change the status quo or undermine peace and stability across the Taiwan Strait.”

Beijing described the meeting as “candid, constructive, substantial, and effective”, which has enhanced mutual understanding. According to the report by China’s state media Xinhua Agency, Xi has warned Washington about building closer links with self-ruled Taiwan and called for cooperation with the US on economic development and avoiding decoupling. Xi said the US and China should enhance cooperation in terms of economy, energy, law enforcement, education, science and technology, cyberspace, and environmental protection.

Biden and Xi have had two phone calls before this summit, in September and February, respectively. This is the first time since Biden took office that the two leaders have spoken face-to-face, albeit virtually.

Day 294: November 10, 2021 – US, China announced joint declaration on climate action

During the final days of the COP26 summit, the US and China made a joint declaration to cooperate on climate issues over the next decade. The US-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s says both sides will “recall their firm commitment to work together and with other parties” to achieve the 1.5C temperature goals set out in the 2015 Paris Agreement.

“We (the US and China) both see that the challenge of climate change is an existential and severe one,” said Chinese climate envoy Xie Zhenhua at a news conference. “In area of climate change, there is more agreement between the US and China than divergence.”

Xie was followed by John Kerry, the US climate envoy, who said the US and China “have no shortage of differences, but on climate, co-operation is the only way to get this job done.”

Day 279: October 26, 2021 – US FCC revokes China Telecom America’s services authority

The US Federal Communications Commission (FCC) terminated China Telecom America’s authority to provide telecom services in America. China Telecom America is a subsidiary of China Telecom, the largest Chinese state-owned telecommunications company. The order gives China Telecom America 60 days to halt its domestic and international services in the US.

Day 278: October 26, 2021 – US Treasury Secretary Janet Yellen, Chinese Vice Premier Liu He hold virtual meeting

China’s Vice Premier Liu He and US Treasury Secretary Janet Yellen talked via video call and discussed the economic situation and US-China relations. According to readouts from China’s commerce ministry and the US treasury department, the two sides agreed that developments in China and the US have important implications for the global economy and it’s crucial for both countries to strengthen communication and coordination of macroeconomic policies. The two sides also raised issues of concern in the bilateral relationship. Chinese Vice Premier Liu He expressed China’s views on US tariffs and sanctions and the treatment of Chinese companies in the meeting.

Day 275: October 22, 2021 – US intelligence officials warn companies in 5 key tech sectors on China

The US National Counterintelligence and Security Center has launched a campaign to warn American companies and research institutions about the risks of interacting with China in five key tech sectors: artificial intelligence, quantum computing, biotechnology, semiconductors, and autonomous systems.

The officials stressed they were not advocating for decoupling but wanted businesses and academics to understand that the Chinese government has a sweeping national plan to dominate in these fields. The move represents the US’s determination to compete with China for technological supremacy.

Day 259: October 6, 2021 – Biden and Xi agree to hold virtual summit by end of this year

The US and China have agreed in principle that President Joe Biden and President Xi Jinping will hold a virtual meeting by the end of 2021. The details on when and how long are still being worked out.

The meeting was brokered by US national security adviser Jake Sullivan and China’s top foreign policy official Yang Jiechi, who reached an agreement after six hours’ meeting in Zurich. This came after Biden and Xi spoke by phone on September 9, 2021, only their second since Biden took office, seven months later after their first call.

The prospect of meeting and bilateral talks offers some assurance that both sides are willing to step up diplomatic coordination despite the tensions rising between the global powers.

Day 247: September 24, 2021 – Huawei CFO Meng Wanzhou returns to China, Spavor and Kovrig allowed to return to Canada

Huawei Technologies’ chief financial officer, Meng Wanzhou, was allowed to return to China after reaching an agreement with US prosecutors in New York. This brings an end to nearly three years of detention in Canada. At about the same time, China released two imprisoned Canadians, Canadian diplomat Michael Kovrig and entrepreneur Michael Spavor, who had been held in China for over 1000 days.

Meng, who is also the daughter of Huawei’s founder Ren Zhengfei, was detained in Vancouver and had been fighting extradition to the US since December 2018. She was accused of violating American sanctions on Iran. Shortly after the US ordered Canada to detain Meng, China arrested Spavor and Kovrig on espionage charges.

In a virtual court hearing in Brooklyn, Meng pleaded not guilty to bank and wire fraud charges, but did acknowledge she misled banks about Huawei’s dealings with Iran. Chinese state media said the two Canadian men had confessed to being guilty, but were released for medical reasons.

The mutual detentions and release have dominated international headlines with the underpinnings of hostage diplomacy. It remains to be seen how the sudden turn of events will affect US-China and China-Canada relations. Canadian Prime Minister Justin Trudeau was just re-elected in September after calling for early elections and his government appears keen to maintain strong economic and trade ties with Beijing. Meanwhile, Washington DC is likely to view the situation less favorably, for strategic reasons.

China’s foreign ministry has labeled Meng’s detention as “political persecution against a Chinese citizen” based on “purely fabricated” fraud accusations. At the news conference on Friday, shortly after the two Canadians depart China, Trudeau said that “these two men have gone through an unbelievably difficult ordeal.”

Day 239: September 16, 2021 – China extends tariff exemptions on 81 products from US

China’s Ministry of Finance announced to extend a tariff exemption for 81 products imported from the US. The tariff exemption, which was due to expire on September 16, 2021, has now been extended until April 16, 2022, according to Tariff Commission Announcement [2021] No.7.

The items which are exempt from retaliatory Chinese tariff were listed in Tariff Commission Announcement [2021] No.2 and Tariff Commission Announcement [2020] No.8. The 81 products include some shrimp, timber, electric vehicle batteries, microscope, and medical testing instruments.

China has been routinely making such extensions amid the prolonged US-China trade war, and this is the fifth time. The last extension granted by China was in May this year. It maintained tariff waivers on products including gold ore and rare earth metal ore.

Day 217: August 25, 2021 – US reportedly approves licenses for Huwai to buy auto chips

The US has granted licenses authorizing suppliers to sell chips to China’s blacklisted telecom company Huawei for its growing auto component business, according to Reuters, citing two people familiar with the matter.

The license applications are said to be worth hundreds of millions of dollars and the chips will be used in vehicle components, such as video screens and sensors. It’s suspected that the license is approved because auto chips are considered less sophisticated, which are less susceptible to US bans.

Despite this, a US Department of Commerce spokesperson said the US government will consistently apply licensing policies “to restrict Huawei’s access to commodities, software, or technology for activities that could harm US national security and foreign policy interests.”

Day 184: July 23, 2021 – China imposes sanctions on seven US citizens and entities

China announced its decision to impose sanctions on seven American citizens and entities, including former commerce secretary Wilbur Ross, in retaliation against the US’s earlier sanctions on seven Chinese officials in Hong Kong. This marks the first time China places counter-sanctions measures using its new anti-foreign sanction law.

Others affected in Beijing’s “reciprocal counter-sanctions” are the current or former heads of a range of US organizations, including Congressional-Executive Commission on China, the US-China Economic and Security Review Commission, the National Democratic Institute for International Affairs, the International Republican Institute, Human Rights Watch, and the Washington-based Hong Kong Democracy Council.

Day 182: July 21, 2021 – US Deputy Secretary Sherman to visit China

US Deputy Secretary of State Wendy Sherman will travel to the eastern Chinese city of Tianjin from July 25 to July 26 and meet with Chinese officials, including Chinese Foreign Minister Wang Yi.

During the two-day trip, Sherman will “discuss areas where we have serious concerns about PRC actions, as well as areas where our interests align,” according to a statement of the US State Department.

Sherman will be the second senior American official visiting China since President Joe Biden took office, following a visit to Shanghai in April by John Kerry, Biden’s special envoy on climate.

Day 175: July 14, 2021 – US Senate passes bill to ban all products from Xinjiang

The US Senate passed legislation to ban all goods imported from China’s Xinjiang region. The Uyghur Forced Labor Prevention Act would create a “rebuttable presumption” assuming that goods from Xinjiang are manufactured by forced labor, unless proven otherwise.

The bill must also pass the House of Representatives before it can be sent to the White House for US President Joe Biden to sign into law. It’s not clear when it will take effect.

Day 170: July 9, 2021 – US adds 23 Chinese companies to economic blacklist

The Department of Commerce’s Bureau of Industry and Security (BIS) of the US added 34 entities to the Entity List, including 23 Chinese companies and entities – 14 over their role in alleged human rights abuses in Xinjiang, five for their ties to China’s military, and another four for doing businesses with other firms that were sanctioned by the US.

The firms suspected of being “implicated in human rights violations and abuses” in Xinjiang include Xinjiang Beidou Tongchuang Information Technology Co, China Academy of Electronics and Information Technology, Suzhou Keda Technology Co, Xinjiang Lianhai Chuangzhi Information Technology Co, Shenzhen Cobber Information Technology Co, Xinjiang Sailing Information Technology, Beijing Geling Shentong Information Technology, Shenzhen Hua’antai Intelligent Technology Co, and Chengdu Xiwu Security System Alliance Co.

These companies and entities added to the Entity List are required to apply for licenses from the Commerce Department and face tough scrutiny when they seek permission to receive items from American suppliers.

Day 154: June 23, 2021 – US bans imports of solar panel material from Xinjiang

The US Commerce Department ordered a ban on US imports of a key solar panel material from Chinese-based Hoshine Silicon Industry Co., Ltd. over forced labor allegations, according to Reuters.

The ban also curtailed US supplier relationships with five Chinese companies – Hoshine Silicon Industry Co., Ltd.; Xinjiang Daqo New Enevery, a unit of Daqo New Energy Corporation; Xinjiang East Hope non-ferrous Metals, a subsidiary of Shanghai-based manufacturing giant East Hope Group; Xinjiang GCL New Energy Material, part of GCL New Energy Holdings; and the paramilitary Xinjiang Production and Construction Corps (XPCC).

Some of the companies listed by the US Commerce Department are major manufacturers of monocrystalline silicon and polysilicon that are used in solar panel production.

Day 145: June 14, 2021 – NATO shifts focus to China, declaring it a global security challenge

Following the G7 Summit, the North Atlantic Treaty Organization (NATO) leaders declared that China presents a global security risk, at their annual summit in Brussels. The traditionally Russia-focused military alliance for the first time shifted its focus to China, asserting the need to respond to Beijing’s growing power.

The final communiqué, signed off by leaders of the 30-member alliance, asserts that China’s “stated ambitions and assertive behavior present systemic challenges to the rules-based international order”. The newly passed NATO 2030 strategy demands that the alliance member states spend more resources on dealing with China’s growing global influence.

As a response, China warned NATO that it will not sit back in the face of any challenges. A statement posted Tuesday on the website of China’s mission to the European Union said that Beijing did not pose a “systemic challenge” to any country and added NATO should not exaggerate China’s military power.

Day 144, June 13, 2021 – G7 leaders criticized China on Xinjiang and Hong Kong

During the three-day summit of the Group of Seven (G7), the leaders of the wealthy democracies criticized Beijing over human rights in its Xinjiang region, called for Hong Kong to keep a high degree of autonomy, and demanded a full investigation of the origins of the coronavirus in China.

The G7 communique said: “with regard to China, and competition in the global economy, we will continue to consult on collective approaches to challenging non-market policies and practices which undermine the fair and transparent operation of the global economy.”

In response, China’s embassy in the UK accused the G7 of “baseless accusations”. “Stop slandering China, stop interfering in China’s internal affairs, and stop harming China’s interests,” a spokesman said on Monday.

Day 142: June 11, 2021 – China’s top diplomat Yang and US Secretary of State Blinken hold phone conversation

On Friday, China’s top diplomat, Yang Jiechi, held a phone call with US Secretary of State Antony Blinken.

Blinken underscored US concerns over issues in Hong Kong, Xinjiang, and Taiwan and stressed the need for a second phase investigation into the origins of COVID-19. He also raised several cases of US and Canadian citizens subject to detention and exit bans in China, according to a statement from the Office of the Spokesperson of the White House.

In turn, Yang urged the US to abide by the one-China principle, according to a statement from China’s Ministry of Foreign Affairs. He criticized Washington DC for interfering in China’s internal affairs, slandering China over COVID-19, and pushing “pseudo-multilateralism” by forming anti-China cliques.

Despite disagreements over the above issues, Blinken put forward an expanded list of areas for US-China cooperation, including the denuclearization of the Korean Peninsula, “shared global challenges” brought by Iran and Burma, and the climate crisis.

Day 141: June 10, 2021 – China passes a new law to counter US and EU sanctions

China’s national legislature, the National People’s Congress (NPC), approved the Anti-Foreign Sanctions Law. The new law offers legal foundation for China to counter US and EU sanctions over trade, technology, Hong Kong, and Xinjiang.

According to the law, individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities could be put on an anti-sanctions list. Those on the list may be denied entry into China or be expelled from the country. Their assets within China may be seized, detained, or frozen. They could be prohibited or restricted from doing business or other activities there. Chinese authorities also have the power to take countermeasures against other individuals or organizations with specific ties to blacklisted individuals or entities.

Day 141: June 10, 2021 – China and US hold a third talk on trade and investment in two weeks

China’s Minister of Commerce Wang Wentao spoke with US Secretary of Commerce Gina Raimondo over the phone. The call followed two similar discussions between Chinese Vice Premier Liu He and US Trade Representative Katherine Tai and US Treasury Secretary Janet Yellen.

A statement from China’s Commerce Ministry said that both sides “had a candid and pragmatic exchange of views on relevant issues and mutual concerns in the China-US business field.”

Day 140: June 9, 2021 – Biden drops Trump attempt to ban TikTok and WeChat, but the scrutiny will continue

US President Joe Biden withdrew a series of Trump-era executive orders that sought to ban new downloads of China-owned apps WeChat and TikTok. To replace the Trump-era ban, Biden signed new orders calling for the Commerce Department to launch national security reviews of apps with links to foreign adversaries, including China.

Day 139: June 8, 2021 – US Senate passes the Innovation and Competition Act of 2021 to compete with China

The US Senate voted 68-32 to approve a sweeping piece of legislation, named the US Innovation and Competition Act of 2021, intended to boost the country’s ability to compete with Chinese technology.

The bill would invest more than US$250 billion into American semiconductor manufacturing, boosting the National Science Foundation, creating regional technology hubs, and spurring 5G innovation.

The Senate’s action highlights a rare bipartisan consensus in Congress on the US strategy for responding to China’s rise.

Day 134: June 3, 2021 – Biden expands Trump-era ban on American investment into Chinese firms

US President Joe Biden issued a new executive order barring American investment into Chinese firms with purported ties to defense or surveillance technology sectors.

The new order expands on an earlier Trump-era blacklist and hits 59 Chinese firms, including the communications giant Huawei. Many of the newly targeted companies are subsidiaries and affiliates of major state-owned companies and businesses named on the earlier blacklist.

American investors will be banned from buying or selling publicly traded securities in targeted companies, beginning August 2, 2021, when the new order takes effect.

Day 132: June 1, 2021 – Chinese and US economic chiefs Liu He and Janet Yellen hold virtual talks

Chinese Vice Premier Liu He and US Treasury Secretary Janet Yellen held a video meeting over economic ties, the second between senior officials from both sides in the past week. The readouts of the meeting were similar to that of the last one between Liu He and US Trade Representative Katherine Tai.

China’s state-run Xinhua News Agency reported the two sides exchanged views on the macroeconomic situation and on the cooperation between the US and China. According to Xinhua, “the two sides believed that the China-U.S. economic relations are very important”.

The US Trade Representative Office (USTR) released its own statement as well: “Treasury Secretary Yellen discussed the Biden Administration’s plans to support a continued strong economic recovery and the importance of cooperating on areas that are in US interests, while at the same time frankly tackling issues of concern.”

Day 126: May 26, 2021 – China, US hold first trade talk since Biden took office

Chinese Vice Premier Liu He spoke by phone with US Trade Representative Katherine Tai, making it the first such conversation on trade between the two sides since President Joe Biden took office.

“In a spirit of mutual equality and mutual respect, the two sides conducted candid, pragmatic, and constructive exchanges,” China’s Ministry of Commerce said in a statement, “The two sides agreed that the development of bilateral trade is very important.”

The US Trade Representative Office (USTR) said in its statement that Tai had “discussed the guiding principles of the Biden-Harris Administration’s worker-centered trade policy and her ongoing review of the US-China trade relationship, while also raising issues of concern.”

Day 92: April 21, 2021 – US Senate Foreign Relations Committee approves the Strategic Competition Act of 2021, signaling bipartisan consensus on China Strategy

The US Senate Foreign Relations Committee has approved the Strategic Competition Act of 2021, signaling bipartisan consensus on orienting US policy towards being more aggressive in efforts to counter China.

The Strategic Competition Act of 2021 was amended to provide more aid to Africa and Latin America to counter China’s financial aid to these countries, grant greater funding for US technology industries, and strengthen the US International Development Finance Corp to compete against the China Development Bank, which has played an instrumental role in Beijing’s signature Belt and Road Initiative.

The bill is expected to pass the Senate and House of Representatives due to broad bipartisan support.

Day 87: April 16, 2021 – US and Japan pledge to strengthen alliance to counter China’ rise

US President Joe Biden and Japanese Prime Minister Yoshihide Suga committed to working together to take on the challenges from China, at a joint news preference in the White House Rose Garden.

The two leaders addressed an array of geopolitical issues in a joint announcement, including “the importance of peace and stability of the Taiwan Strait”. In another swipe at China, the US and Japan announced to invest together in areas such as 5G, artificial intelligence, quantum computing, genomics, and semiconductor supply chains.

The Chinese embassy in Washington expressed “strong concern” and “firm opposition” to the joint statement, saying China will firmly safeguard its national sovereignty, security, and development interests.

Day 87: April 16, 2021 – US and China announce joint statement addressing the climate crisis

US Special Presidential Envoy for Climate John Kerry and China Special Envoy for Climate Change Xie Zhenhua met in Shanghai on April 15 and 16, 2021 and announced a joint statement.

According to the statement, the two sides will cooperate with each other and with other countries to “tackle the climate crisis”. The two sides will also “cooperate to promote a successful COP 26 in Glasgow, aiming to complete the implementation arrangements for the Paris Agreement”.

The statement was released after John Kerry’s three-day visit to Shanghai, which was the first official trip to China by a Biden Administration official.

Day 79: April 8, 2021 – US senators introduces the Strategic Competition Act of 2021, seeking to counter China

The US Senate Foreign Relations Committee’s Democratic Chairman, Senator Robert Menendez (D-New Jersey), and the Republican Senator of Idaho, Jim Risch, introduced a bipartisan agreement entitled the Strategic Competition Act of 2021. The nearly 300-page Act seeks to counter the expanding global influence of China.

The bill set out the following policy goal: to “sustain its [US] global leadership role” and asserted that the Chinese government has been leveraging its political, diplomatic, economic, military, technological, and ideological power to compete with the US on the global stage.

If enacted, the bill would place additional sanctions on Chinese officials accused of alleged human rights abuses in Hong Kong and Xinjiang, authorize funds to “promote democracy” in Hong Kong, and void all restrictions on US officials’ interaction with Taiwanese counterparts. It will also establish a program to help Indo-Pacific countries develop infrastructure to counter China’s Belt and Road Initiative (BRI) and would expand the scope of the Committee on Foreign Investment in the US (CFIUS) to monitor relationships between Chinese and American educational institutions.

Day 79: April 8, 2021 – US blacklists seven Chinese supercomputing entities

The US Commerce Department added seven Chinese supercomputing entities to its Entity List, citing activities contrary to the national security or foreign policy interests of the US.

The seven entities are Tianjin Phytium Information Technology, Shanghai High-Performance Integrated Circuit Design Center, Sunway Microelectronics, the National Supercomputing Center Jinan, the National Supercomputing Center Shenzhen, the National Supercomputing Center Wuxi, and the National Supercomputing Center Zhengzhou.

American companies are barred from doing business with companies on the entity list without first obtaining a US government license.

Day 62: March 22, 2021 – EU, US, UK, and Canada sanctions China over alleged Xinjiang human rights issue

The EU sanctioned four Chinese individuals, including a top security director, for alleged human rights abuses in Xinjiang. Similar steps were followed by the US, UK, and Canada. The US, on the same day, sanctioned two Chinese government officials in connection with what they called the “serious” human rights abuses against ethnic minorities in Xinjiang.

In retaliation, China sanctioned back 10 EU citizens and four entities. The tit-for-tat sanctions put EU-China Comprehensive Agreement on Investments (“CAI”) in doubt.

Businesses are caught in the geopolitical crossfire. Some leading Western apparel brands like H&M, Nike, Adidas, and Burberry faced backlash and boycotts in China due to their stated concerns over the alleged use of forced labor in Xinjiang.

Day 58-60: March 18-20, 2021 – US and China hold the first high-level meeting in Alaska

The US and China concluded their first high-level face-to-face meeting in Anchorage, Alaska.

After one session of heated arguments in front of reporters and two sessions of closed-door discussions, the Secretary of the US Antony Blinken and National Security Advisor Jake Sullivan and their Chinese counterparts China’s top foreign affairs official Yang Jiechi and Foreign Minister Wang Yi ended their two-day meeting – without releasing a joint statement.

During the first day’s open session, both sides leveled sharp rebukes of the other’s policies for over an hour. Blinken said in his opening remarks that the US would discuss its “deep concerns with actions by China, including in Xinjiang, Hong Kong, Taiwan, cyberattacks on the US, economic coercion toward our allies.”

Yang Jiechi accused the US of being “condescending” in its tone and retorted that the US had been misusing its military and financial might and abusing the notion of national security to obstruct trade flows and incite anti-China sentiment.

After the meeting, the two sides separately released announcements, in which they both identified limited areas of cooperation and coordination with respect to climate change and geopolitical issues related to Iran, North Korea, Myanmar, and Afghanistan, while acknowledging “fundamental” disagreements regarding Hong Kong, Xinjiang, Tibet, and Taiwan issues.

Day 57, March 17, 2021 – US telecom regulator moves against Chinese telecom firms over national security concerns

US telecom regulator the Federal Communications Commission (FCC) announced the launch of a proceeding to determine whether to strip the local business license from China Unicom Americas as well as Pacific Networks and its wholly-owned subsidiary ComNet, citing national security concerns.

Last December, the FCC opened a similar proceeding to begin revoking the authorization of China Telecom, the largest state-owned Chinese telecommunication company, which has had US authorization for nearly 20 years.

Day 57, March 17, 2021 – US sanctions 24 Mainland China and Hong Kong officials ahead of Alaska talks

The US sanctions an additional 24 Chinese and Hong Kong officials over Beijing’s policy in Hong Kong. Foreign financial institutions that knowingly conduct significant transactions with the listed individuals will be subject to the US sanctions.

The sanctions announcement was made during a visit by the US State Secretary Antony Blinken and Defense Secretary Lloyd Austin to Japan and South Korea.

Day 52: March 12, 2021 – Five Chinese companies including Huawei are backlisted by US telecom regulator

Five Chinese companies – Huawei Technologies Co., ZTE Corp., Hytera Communications Corp., Hikvision Digital Technology Co., and Dahua Technology Co. – were named to a new blacklist published by the US Federal Communications Commission (FCC) on national security grounds under a 2019 law.

This makes the FCC the latest regulator to maintain such a list. Other agencies with similar lists include the US Department of Commerce and the Department of Defense. Each list carries different implications, though they are all designed to steer investors, suppliers, and customers away from the companies – sometimes forcibly.

Day 51: March 11, 2021 – US and China to hold their first high-level meeting since Biden’s inauguration

The US Secretary of State Antony Blinken and National Security Advisor Jake Sullivan will meet with China’s most senior foreign policy official, Yang Jiechi, and Foreign Minister Wang Yi in Anchorage, Alaska on March 18, according to the US State Department. The meeting will take place following Secretary Blinken’s visit to Tokyo and Seoul.

The talks are to be a one-off, as per blunt statements from US officials, following which there will be expectations upon Beijing to choose the trajectory of engagement.

Day 50: March 10, 2021 – The US extends tariff exclusion on Chinese medical products

The Biden administration is extending tariff exclusions on about 99 categories of medical products from China until September 30, 2021 – to aid the fight against COVID-19, according to the notice released by the Office of the United State Trade Representative (USTR).

The exclusion covers a wide range of items from medical masks and gloves to blood pressure cuff sleeves and X-ray tables. The earlier tariff exclusion extension on these medical products under Trump administration’s ‘Section 301’ tariffs was set to lapse on March 31, 2021.

Day 22: February 10, 2021 – President Xi Jinping and Joe Biden break the ice with phone call

On the eve of the Lunar New Year, the US President Joe Biden and his Chinese counterpart Xi Jinping had the first phone call since Biden took office.

While both leaders extended festival greetings to the other, the US side emphasized concerns raised on economic practices, human rights, and Taiwan, while China focused on mutual respect, cooperation, and dialogue.

Day 17: February 5, 2021 – Top US and China diplomats talk over phone for the first time since Biden takes office

The US Secretary of State Antony Blinken spoke with China’s top foreign policy official, Yang Jiechi, in their first high-level conversation since President Joe Biden took office.

Blinken stressed on human rights and the ongoing military coup in Myanmar, while Yang called for Washington to stop interfering in China’s internal affairs and respect China’s sovereignty.

Day 2: January 21, 2021 – China sanctions Pompeo and other Trump administration officials

China announced a sanction against 28 Trump administration officials, including the former Secretary of State Mike Pompeo, accusing them of interfering in its internal affairs. The sanction would ban the officials and their families from entering China and place restrictions on companies associated with them.

Day 1: January 20, 2021 – Joe Biden gets sworn in as the next US president

Newly sworn in, US President Joe Biden delivered his inaugural address and signed a flurry of executive orders on his first day in office. Biden prioritized issues like COVID-19 virus, climate change, and inequality and racism.

In dealing with China, Biden signaled he was in no rush to depart from the Trump administration’s policies. The same day, Biden’s aides, including the nominee for Secretary of State, Antony Blinken, and the nominee for Treasury Secretary, Janet Yellen, indicated that the president planned to take a multilateral approach by enlisting the support of Western allies to maximize Washington’s leverage on Beijing.

This timeline was first published on March 17, 2021 and will show rolling updates.

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