US-China Relations in the Biden Era: A Timeline November 20, 2024 Posted by China Briefing Written by China Briefing Team Reading Time: 125 minutes This article on US-China relations was originally posted on March 22, 2021, and last updated on October 10, 2024. On January 20, 2021, Joe Biden was sworn in as the 46th 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 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