The US-China Economic Relationship 2.0 Stealable Slides: Use them any way you like

The World’s Two Biggest Economies Economy Rank No. 2 GDP (April 2018) $ 20.41 trillions $ 14.09 trillions Growth Rate (2018 est.) 2.9% 6.6% GDP/Capita (2018 est.) $ 62,150 $ 10,900 Population 327~ millions 1.4~ billions Population Rank No. 3 No. 1 Area (sq km) 9.83 millions 9.60 millions Source: IMF; Statisticstimes

2017 Record Trade Deficit Deficit Major US exports to China $500 billion ■ Imports of Chinese goods 400 ■ Exports of US goods to China 300 Deficit 2017 Trade Deficit -$375.22bn *Highest on record 200 100 1990 1995 2000 2005 2010 2015 2017 Source: www.census.gov Major US exports to China Airplanes Soy beans Cars Electronics, equipment and machines Semiconductors Major Chinese exports to US Cellphones and household goods, n.e.c. Computers Telcomm. equipment Computer accessories

Chinese FDI in US surging, but facing restrictions 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 Major Chinese deals blocked in 2017 Canyon Bridge Capital Partners ► Lattice Semiconductor Orient Hontai Capital ► AppLovin China Zhongwang Holdings ► Aleris $10 billion $1.3 billion $6.5 billion $1.4 billion $6 billion $2.3 billion Major Chinese deals blocked in 2018 Broadcom ► Qualcomm Ant Financial ► MoneyGram HNA ► Skybridge Financial* $5.6 billion $5.5 billion $117 billion $3.6 billion $1.2 billion $3.5 billion $180 million Source: Rhodium Group, New York Times

Love-hate relationship, but an important one 96% Not Important Extremely important 43% Somewhat important 18% Very important 35% How important are positive bilateral relations between China and US to your business growth in China (2017) Source: AmCham China Business Climate Survey 2018 US views of China Favorable Unfavorable Chinese views about the US Favorable Unfavorable Source: Pew Research Center

Recent Developments 2017-2018 Q1 March 2018 Trump directs Administration to take actions responding to China’s acts, policies, and practices involving harmful acquisition of U.S. technology January 2018 Trump announces steel and aluminum trade tariffs for China July 2017 First U.S.-China Comprehensive Economic Dialogue ends with no press conference or joint statement December 2017 U.S. labels China a “revisionist power” when releasing National Security Strategy Recent Developments 2017-2018 Q1 July 2017 Conclusion of 10-point “Early Harvest,” including re-introduction of U.S. beef to the Chinese market November 2017 China announces various measures opening financial and new energy vehicle sectors August 2017 U.S. initiates “Section 301” investigation of Chinese theft of intellectual property November 2017 Xi hosts Trump for state visit - $250 billion of “deals” signed October 2017 U.S. imposes anti-dumping duties on Chinese aluminum foil

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