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CUSEF Express - May 6, 2022

2022-05-06
Daily highlights of developments that affect China and the U.S.
Daily highlights of developments that affect China and the U.S.

China stands firm on “dynamic zero-COVID” policy

  • Chinese President Xi Jinping asked the nation to adhere to the “dynamic zero-COVID” policy when presiding over a meeting of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee.

Biden says China tries to interfere Competition Bill

  • With the U.S. Congress working toward a compromise over the Bipartisan Innovation Act (BIA), President Joe Biden Tuesday accused China of interfering in it. Speaking at a Lockheed Martin Corp. plant in Alabama, Biden said, “the Chinese Communist Party is lobbying folks to oppose this bill,” adding that “it’s an issue that unites Democrats and Republicans.”
  • Both versions by the Senate and the House include a plan to provide a $52 billion fund for the semiconductor industry. The administration has been advocating for the appropriation on multiple occasions. The fund is authorized in the CHIPS Act, or Title XCIX of the National Defense Authorization Act (NDAA) for Fiscal Year 2021, which aims to restore the U.S.’s dwindling chip fabrication capacity and enhance its research and development in semiconductors.

U.S. trade deficit hits record high

  • The trade deficit of the U.S. climbed by 22.3% to $109.8 billion in March at a record high, with imports surging 10.3% to $351.5 billion and exports rising 5.6% to $241.7 billion. The imports of goods were the major contributor to the widening trade gap, with the value up by 12% to a record $298.8 billion. The products that saw an increase in inflow include petroleum, consumer goods, capital goods, and automobiles.

ASEAN, G20, APEC to engage all partners and stakeholders

  • Cambodia, Indonesia, and Thailand, the chair countries of ASEAN, G20, and APEC, issued a joint statement on Wednesday, saying they would “work with all our partners and stakeholders to ensure a spirit of cooperation.” The countries will separately hold the summits of the three groups in November.
  • The statement, released days before the U.S.-ASEAN Special Summit in Washington, D.C., strongly implies the determination of the ASEAN countries to stay independent in their policy decisions.
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