The US-China Economic Relationship Stealable Slides: Use them any way you like

The World’s Two Biggest Economies Economy Rank GDP (2016 nominal) Growth Rate (2016) GDP/Capita (2016) Population Population Rank Area (sq km) No. 1 No. 2 $ 11,23 trillions 6.7% $ 18,62 trillions 1.6% $ 57,400 $ 15,400 1.37 billions 326 millions No. 3 9.60 millions 9.83 millions Source: CIA World Fact book; IMF

2017 On Track for Record Trade Deficit 2017 trade deficit on track to match record set in 2015 ■ Imports of Chinese goods ■ Exports of US goods to China Deficit 2017 2015 2010 2005 2000 1995 1990 100 200 300 400 $500 billion Source: www.census.gov Major US exports to China Airplanes Soy beans Electronics, equipment and machines Major Chinese exports to US Electronics, equipment and machines Clothing Furniture

Chinese FDI in US surging, but facing restrictions US FDI in China 1990-2016: $242.57bn 40b 30b 20b 10b Source: www.us-china-fdi.com Chinese FDI in US 1990-2016: $110.08bn 40b 30b 20b 10b Source: www.us-china-fdi.com Major Chinese purchases in US in past 2 years HNA ► CIT’s aircraft leasing unit HNA ► Hilton Hotels HNA ► Ingram Micro Qingdao Haier ► General Electric appliances business Anbang ► Strategic Hotels properties Apex Technology ► Lexmark Wanda ► Legendary Entertainment Chinese deals awaiting US security review Ant Financial ► MoneyGram HNA ► Skybridge Financial $880 million $10 billion $180 million $6.5 billion $6 billion Major Chinese deals blocked in 2017 Orient Hontai Capital ► AppLovin Canyon Bridge Capital Partners ► Lattice Semiconductor HNA ► Global Eagle Entertainment $1.4 billion $5.6 billion $5.5 billion $1.3 billion $3.6 billion $3.5 billion $400 million Source: Rhodium Group

Love-hate relationship, but an important one 95% Not Important Extremely important 40% Somewhat important 23% Very important 32% How important are positive bilateral relations between China and US to your business growth in China (2016) Source: AmCham China Business Climate Survey 2017 US views of China Favorable Unfavorable Chinese views about the US Favorable Unfavorable Source: Pew Research Center

Recent Developments 2017 April Trump hosts Xi for talks at his Mar-a-Lago estate December U.S. labels China a “revisionist power” when releasing National Security Strategy July First U.S.-China Comprehensive Economic Dialogue ends with no press conference or joint statement November China announces various measures opening financial and new energy vehicle sectors Recent Developments 2017 July Conclusion of 10-point “Early Harvest,” including re-introduction of U.S. beef to the Chinese market November Xi hosts Trump for state visit - $250 billion of “deals” signed August U.S. initiates “Section 301” investigation of Chinese theft of intellectual property October U.S. imposes anti-dumping duties on Chinese aluminum foil

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