This article was originally posted on March 22, 2021 and last updated on May 19, 2022.
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 towards 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.
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 U.S.-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 U.S.-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).
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 bilateral 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  No.7.
The items which are exempt from retaliatory Chinese tariff were listed in Tariff Commission Announcement  No.2 and Tariff Commission Announcement  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 U.S.-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.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at firstname.lastname@example.org.
Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Russia, in addition to our trade research facilities along the Belt & Road Initiative. We also have partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh.
Previous Article « China Coronavirus Updates: Latest Developments and Business Advisory
Next Article China Travel Restrictions 2021/2022: An Explainer (Updated) »
Doing Business in China 2022 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates in...
With the scope and penalties of China’s social credit system being further clarified in 2021, legal and regulatory compliance has become more important than...
As a legitimate tool for reasonable tax planning and cost saving, tax incentives play an important role. Companies also use tax incentives as a useful...
Dezan Shira & Associates helps
businesses establish, maintain,
and grow their operations.
Stay Ahead of the curve in Emerging Asia. Our subscription service offers regular regulatory updates,
including the most recent legal, tax and accounting changes that affect your business.