YELLEN TO CHINA AMID ECONOMIC TENSIONS: Treasury Secretary Janet Yellen is traveling to China next month to engage in talks with senior leaders, two U.S. government officials told POLITICO. The Biden administration hasn’t confirmed the visit, which will come as tensions remain strained over trade feuds including restrictions on exports of high-tech goods like chip manufacturing equipment. China is looking to open its market to overseas firms after investment fell to record lows, but business leaders have expressed unease over Beijing’s strict regulatory environment and policies over data collection. The trip functions as a follow-up to Yellen’s meetings in Beijing in July that resulted in the formation of new Economic and Financial Working Groups designed for “frank and substantive discussions” on contentious issues. Beijing’s pitch: Chinese Premier Li Qiang downplayed foreign investors’ concerns during a speech at the China Development Forum over the weekend, and said “some difficulties and problems are not as serious as people think.” Li added that the country will study issues around cross-border data flows and market access. "We cordially welcome companies from all countries to invest in China and deepen their foothold in China," Li said, per Reuters. But despite reassurances from top Chinese officials, global CEOs say the risk-reward trade-off for investing in China has dramatically shifted as long-term growth prospects in the country falter. Jens Eskelund, president of the European Chamber in China, warned in a podcast last week that “there’s still quite a high level of uncertainty when it comes to the policy environment, the regulatory environment in China.” Nicholas Burns, the U.S. ambassador to China, weighed in on the state of China’s economy more broadly during a recent webinar with the East-West Center. “Most economists that I read out here, American and Chinese, are predicting that in a year or two or three China will be down to 2 or 3 percent nominal GDP growth,” he said, adding “there are structural issues out here.” WHAT’S NEXT FOR THE CHINA COMMITTEE? Republican Chair Mike Gallagher (Wis.) is stepping down early, leaving a hole on the House Select Committee on China. The group was already rife with internal divisions, including over whether it should even be renewed after its current mandate expires. Still, his departure, planned for April 19, is surprising given that the committee recently nabbed a legacy-making moment: House passage of a bipartisan bill that would force TikTok in the U.S. to sever its ties to the Chinese government. The legislation is now facing an uncertain future in the Senate, where some lawmakers have expressed concerns over its constitutionality. "I've worked closely with House Republican leadership on this timeline and look forward to seeing Speaker Mike Johnson appoint a new chair to carry out the important mission of the Select Committee on the Chinese Communist Party," Gallagher said. Peak under the hood: A House Select China Committee staffer said they expect the panel’s work to continue uninterrupted into the next session. Gallagher’s departure “is only a speed bump,” the staffer said. “The China piece is something that, as a committee, helps both Democrats and Republicans at a very political time.” Eleanor Mueller and Olivia Beavers have more. BILL TO TIGHTEN DEFENSE SUPPLY CHAIN: A group of senators is pushing the “Securing America’s Titanium Manufacturing Act” that would remove a 15 percent tariff to titanium sponge imports from close trade partners until 2031. Sens. Joe Manchin (D-W.V.), Catherine Cortez Masto (D-Nev.), Marsha Blackburn (R-Tenn.), Thom Tillis (R-N.C.), and Shelley Moore Capito (R-W.V.) introduced the bill Thursday, which would strike the duty for countries with preferential trade status. The tariff would still apply to imports from Belarus, Cuba, North Korea and Russia. “Titanium is a critical mineral essential for engines, military fighter aircraft, satellite parts, and many other military technologies,” Manchin said. His office said the U.S. titanium industry imports all of its sponge, with 90 percent coming from Japan. Reminder: The bill reflects certain recommendations outlined in an August 2023 report, “Titanium Sponge Working Group,” which concluded removing the tariff would benefit the domestic titanium industry, but noted the U.S. lacked the statutory authority to do so. The bill would provide that statutory authority. It would also require the president to monitor imports from China, and reapply the tariffs if necessary to protect domestic industry or national security. The legislation is supported by the United Steelworkers, the Aerospace Industry Association and the Titanium Metals Corporation, per Manchin’s office. SENS CALL FOR CHINA THREAT ANALYSIS: Lawmakers also introduced the “American Economic Independence Act” that would compel the president to conduct a “comprehensive threat analysis” posed by economic integration with Beijing in areas like critical minerals and artificial intelligence. “After delivering the threat analysis, the Executive Branch would be tasked with providing recommendations to Congress to mitigate the national security risks posed by China in each economic sector,” wrote the sponsors, which include Sens. Mitt Romney (R-Utah), John Cornyn(R-Texas), James Lankford (R-Okla.), Sherrod Brown (D-Ohio), Catherine Cortez Masto (D-Nev.) and Todd Young (R-Ind.).
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