US-China Relations Updates

The US Congressional-Executive Commission on China released a lengthy annual report on Tuesday (14th), consisting of 753 pages. The report highlights that Chinese companies have circumvented Washington’s ban by purchasing US equipment to manufacture advanced chips. It also states that official visits between the US and China have failed to change China’s behavior, as Beijing continues to increase resource allocation for military expansion.

According to the report, the US Department of Commerce prohibited the export of equipment capable of producing chips at 14 nanometers or below to China last year. However, Chinese importers have still managed to acquire such equipment. Due to limited verification capabilities regarding the intended use of the equipment, it becomes challenging to confirm whether it is being used for advanced chip production. The report does not provide specific recommendations to address these loopholes but urges Congress to conduct an annual assessment of export controls on chip equipment to China.

The report mentions that high-level US-China meetings have only resulted in commitments for further discussions rather than concrete actions. China continues to refuse cooperation with the US on national security, economic, and trade issues. Furthermore, despite facing the most severe economic crisis in 40 years, China continues to seek technological breakthroughs in areas such as missiles, space, underwater warfare, and artificial intelligence, granting the People’s Liberation Army the capability to deter or defeat the military forces of the US and its allies.

Additionally, the report highlights Beijing’s attempts to interfere in Taiwan’s upcoming elections. It suggests that the US Department of Defense expand training facilities for Taiwanese forces to US soil and allow Taiwanese observer teams to be stationed at US training bases. The report also covers Beijing’s relationship with Hong Kong and Europe.