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1 [1] (March 3, 2021)

handle is hein.crs/govecmo0001 and id is 1 raw text is: China Primer: U.S.-China Relations Updated March 3, 2021 Overview In its early statements, the Joseph R. Biden Administration has signaled significant continuity with the Donald J. Trump Administration in its characterization of the challenge the People's Republic of China (PRC or China) poses to U.S. interests. President Biden has referred to China as our most serious competitor, stated that China is challenging our prosperity, security, and democratic values, and called on allies and partners to prepare together for long-term strategic competition with China. In written responses to questions from Senators, then- Secretary of State-nominee Antony J. Blinken described China as engaged in conduct that blunts our technological edge, threatens our alliances and our influence in international organizations, and is designed to make America and its allies more dependent on China, and China less dependent on America and our allies. Secretary of Defense Lloyd Austin, at his own confirmation hearing, called China the most significant threat going forward. China is already a regional hegemon, he said, and it seeks to become the preeminent power in the world in the not- too-distant future. As it reviews the Trump Administration's China actions, the Biden Administration has pledged to meet the challenge from China by working closely with U.S. allies and partners; re-engaging with the United Nations; ensuring the U.S. military's ability to present a credible deterrence to China; putting democratic values at the center of foreign policy; and making investments at home in American workers, infrastructure, education, and innovation. National Security Advisor Jake Sullivan has acknowledged that forging a common position on China with European allies will be challenging because we don't have entirely aligned perspectives. Forging a common position with Asian allies could be more challenging still, given their competing strategic aims and their geographic proximity and close economic ties to China. In their overtures to the Biden Administration, China's top leader and other senior officials have called for dialogue and cooperation, while also warning the United States to keep out of China's internal affairs. In February 2, 2021, remarks, China's top diplomat advised the United States to respect China's positions and concerns on Taiwan, stop interference in Hong Kong, Tibet, and Xinjiang affairs, and stop attempts to hold back China's development, calling those issues a red line that must not be crossed. Select Issues in U.S.-China Relations Trade and Investment China was the United States' largest goods trading partner in 2020, even as U.S. imports from China fell by $100 billion between 2018 and 2020. Foreign direct investment (FDI) flows have slowed since 2017, while other ties not captured in trade and FDI data have expanded, including financial investments and China's use of U.S. open source technology platforms. U.S. concerns about China's trade practices center on the expansive role of the state in China's economy, China's domestic restrictions in sectors in which China is expanding overseas, and China's efforts to export its rules and standards globally. China has been largely unwilling to acknowledge and address U.S. concerns, which are now evolving into broader considerations about how China's actions may challenge U.S. competitiveness and national security. The Coronavirus Disease 2019 (COVID- 19) pandemic exposed supply chain risks and prompted Congress to advance legislation, such as P.L. 116-136, to encourage diversification, transparency, and some on- shoring. A February 2021 Executive Order (E.O.) directs an assessment of critical U.S. supply chains, building on related Trump Administration E.O.s. In 2018, the Trump Administration, acting under Section 301 of the Trade Act of 1974 (19 U.S.C. §2411), concluded that China engages in forced technology transfer, cyber- enabled theft of U.S. intellectual property (IP) and trade secrets, discriminatory and nonmarket licensing practices, and state-funded strategic acquisitions of U.S. assets. In response, it increased tariffs on approximately $250 billion of imports from China. The PRC countered with tariffs on $110 billion worth of U.S. products. Most tariffs remain in effect. The United States and China signed a phase one agreement in January 2020, in which China committed to strengthen IP enforcement and remove some barriers, but left most U.S. concerns unresolved. China committed to buy $468 billion of U.S. goods, energy, agriculture, and services over two years, but its purchases fell short in 2020. Technology To address China's industrial policies that seek civilian and military technology leadership, the Trump Administration sought to curtail U.S. technology transfer to China. It increased scrutiny of academic ties, strengthened investment review authorities, tightened export controls, and banned U.S. investment in firms tied to China's military. It banned PRC firms Huawei, China Mobile, and China Telecom from the U.S. market and encouraged other countries to follow suit. Then-Secretary of Commerce nominee Gina Raimondo declined to take a position on China technology issues during her confirmation hearing. The prominence of these issues has focused attention on possible nominees for Undersecretary of Commerce for Industry and Security and their approach to dual-use technology policy and licensing. The White House has said it will not let PRC vendors of concern into the U.S. market but has not addressed export controls and restrictions. It is ittps://Crsreports.congress.g(