The Global Stocktake is a quinquennial assessment of the progress made on climate change action since the 2015 Paris Agreement. The two sides also discussed other global security issues, including the Russia-Ukraine War and the “provocations from the Democratic People’s Republic of Korea”. Meanwhile, a readout from the US Department of Defense (DOD) echoed the Chinese side’s position on developing the military relationship to prevent an escalation into conflict. The US side also reiterated the US’s commitment to the One China Policy, as well as the Taiwan Relations Act, the Three US-China Joint Communiques, and the Six Assurances. Senior US and Chinese defense officials met for the 2024 US-PRC Defense Policy Coordination Talks, held from January 8 to 9, 2024 at the Pentagon. In addition to the above initiatives, Yellen stated that the US and China have announced they will continue to hold technical exchanges on financial issues.

Congress’ Pentagon Frustrations Dominate Defense Confirmation Hearings

While the rule applies worldwide and does not explicitly mention China, exports or reexports of these items to China (and other countries) will require a license, with the license application to be reviewed “with a presumption of denial”. Meanwhile, exports and reexports to countries that impose export controls on conventional arms and dual-use goods and technologies (specifically, the Wassenaar Arrangement Participating States) will have their licenses reviewed with “a presumption of approval”. 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”. On trade, Biden’s policies—such as investment restrictions on Chinese technology sectors—were start forex trading 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.

As the U.S. technology sector continues to develop, previous administrations have sought to restrict exports to protect U.S. technology from advancing the Chinese military. Congress passed the Export Control Reform Act, which gave the president authority to control U.S. exports that were seen as having a “dual-use” capacity for commercial and military purposes. Biden strengthened these restrictions as well as limited some U.S. investment in certain Chinese technologies and bulk data transfers to China. Since then, U.S. exports of goods and services to China, such as energy and manufacturing, have not returned to pre-trade war levels. The trade war that started in 2018 resulted in both countries experiencing economic pains; U.S. economic growth slowed, the trade deficit continued to grow, and studies found that U.S. companies primarily bore the cost of the tariffs. CFR Fellow for Trade Policy Inu Manak says these tariffs largely fail to divert trade away from China in a global economy.

Trump’s Deals in Asia: China, Korea, Japan The Capital Cable #124

• Trump’s approach can no longer be characterized as the United States or its allies versus China, but rather the United States versus the rest of the world.
• The agreement has led to cautious optimism among investors, with shares of major Chinese tech stocks rising 6 percent after the announcement.
• U.S. officials also fear that China’s acquisition of sensitive U.S. technology will bolster China’s military.
• In previous eras, the United States and China found ways to build a foundation on which the two countries could work together despite their disagreements.
• 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.
• 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.

Washington, wary of espionage, has raised concern that U.S. companies using Chinese technology could be putting U.S. national security at risk. TikTok, the Chinese-owned social media app, has been a major target by U.S. lawmakers seeking to restrict Chinese access to Americans’ data. After Trump floated the idea of banning TikTok in his first term, Biden signed into legislation that TikTok’s parent company, Bytedance, would be required to sell the social media app to a U.S. owner or face a ban. TikTok sued the U.S. government—arguing that the forced sale is not feasible and violates the First Amendment—but the Supreme Court ultimately upheld the ban. Since then, the ban had been delayed multiple times, and in September 2025, the Trump administration announced it had reached a framework approved by Chinese President Xi Jinping to sell parts of TikTok to U.S. investors, valued at $14 billion. 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.

Toward a Taiwan Truce

• Meanwhile, Chair of the PCAOB Erica Y. Williams stated that “On paper, the agreement signed today grants the PCAOB complete access to the audit work papers, audit personnel, and other information we need to inspect and investigate any firm we choose”.
• The importance of the Chinese market to US agriculture makes it a pragmatic entry point to improving US-China relations and trade ties.
• The announcement also states that technologies with dual military and civilian uses are subject to export controls.
• The exclusion covers a wide range of items from medical masks and gloves to blood pressure cuff sleeves and X-ray tables.
• A joint statement released by the Chinese Ministry of Ecology and Environment (MEE) and the US Department of State, respectively, outlines 25 points of agreement on jointly tackling the climate crisis.

The recent visits of four senior Biden administration officials to China demonstrate a commitment to maintaining cordial ties. Meanwhile, the U.S. should factor in the potential for greater geopolitical instability into its near- and long-term strategy. Changes to the international economic system will take time, particularly in China-centric supply chains or those where a relatively small number of international entities dominate key segments.

Military, police, MILF join forces in friendly basketball match – GMA News

On Sunday, China set a new heat record of 52.2C in Xinjiang Province and has experienced a series of severe heat waves and flooding in recent weeks and months. The US has seen similarly extreme weather events this year, including flooding, heat waves, and the adverse impact of wildfires in neighboring Canada. According to the readout of the meeting from the Chinese Ministry of Commerce (MOFCOM), Minister Wang expressed “serious concerns about US Section 301 tariffs on China, semiconductor policies, two-way investment restrictions, discriminatory subsidies, and sanctions on Chinese companies”.

Its recent controls on rare earths—minerals crucial to the manufacturing of automobiles, semiconductors, and military weapons worldwide—aroused alarm for the global effects it has on the technology supply chain. China produces 60 percent of the world’s rare earths and processes almost 90 percent of rare earth magnets. After the first Trump administration began a trade war with China in 2018, economic tensions between Washington and Beijing have been on the rise. Chinese officials have warned that there are “no winners” in a trade or tariff war, although President Joe Biden continued many of Trump’s policies. In his second term, Trump has escalated tariffs threats as China imposes rare-earths export controls, which created a global supply shortage for the minerals necessary to build most technologies, from semiconductor chips to electric batteries. Defense Secretary Lloyd J. Austin III spoke to Chinese Minister of National Defense General Wei Fenghe for the first time under the Biden Administration.

These rules aim to prevent U.S. investments from advancing technologies that could pose national security threats. 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. Relations between the United States and China are beset by a minefield of disputes across a wide range of issue areas, including not just security, but also trade and technology. While it is not clear whether all these issues were discussed, we do know that among those covered were human rights, Xinjiang, Hong Kong and the South China Sea, as well as Taiwan.

Trump’s Chaotic Agenda Has a Critical Through Line

American companies are barred from doing business with companies on the entity list without first obtaining a US government license. 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. US President Joe Biden issued a new executive order barring American investment into Chinese firms with purported ties to defense or surveillance technology sectors. 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. 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.

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. 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. 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 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. 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.

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. 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 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.

Federal Statistics For Economic Security

The US and China saw their rivalry reach new heights in 2021 as both countries embarked on trade, defense and diplomatic policies marked by increased suspicion and antagonism. In this context, policymakers and strategists in both China and the United States have a rare opportunity to temper their attitudes toward each other. Washington could reassess the dominant perception that China seeks to overthrow U.S. global leadership. A change in narratives will help move past the hostility that has prevented the two sides from working together more productively. Although strategists and policymakers in Washington and Beijing alike tend to blame the deterioration in U.S.-Chinese relations on hostile policies from the other side, an alternative explanation is that the old model of globalization became unsustainable. The security architecture of the Middle East has undergone rapid transformations in an exceptionally short period.

The panel will also discuss the role of other major powers, including China and Russia in shaping this new security environment in the region, and how the Biden administration will respond to these powers’ increasing regional presence. As the global power structure continues to shift, it is essential to analyze the future of the US regional presence under the Biden administration, explore the emerging global rivalry with Russia and China, and at last, investigate the implications of such competition for peace and security in the Middle East. The relationship between the United States and China has deteriorated to its lowest point in decades—complicated by a more confident China that is bolstered and proud of its economic success, a shift in the international system toward multipolarity and further exacerbated by the COVID 19 pandemic.

The agreement comes ahead of the planned meeting between President Xi Jinping and President Joe Biden in San Francisco on Wednesday, November 15. In the suit, TikTok argued that the bill “infringes on its First Amendment right to make editorial choices over content curation”, while the users argued that “their right to speak on the platform is limited by the bill”. In its conclusion, the preliminary injunction found that the bill “limits constitutionally protected First Amendment speech”, and that it “oversteps state power and infringes on the Constitutional rights of users and businesses”. The law made it illegal for mobile app stores, such as Apple’s App Store and Google Play, to host TikTok on their platforms. This was the first such bill passed into law by a US state, although the app had already been banned on government devices. The Biden administration argues that China’s subsidies and incentives to the domestic steel and aluminum industry artificially lower the prices of Chinese products, thereby undercutting US producers.

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”. 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.

GAAP, drawings are treated as a reduction in equity, not an expense, ensuring that profit and loss statements reflect only operational results and not personal transactions. Drawings, also known as “owner withdrawals” or “owner’s draw,” refers to the process of taking money out of a business by the owner for personal use. In bookkeeping terms, drawings are recorded as a reduction in the owner’s equity account and are not considered as business expenses. A Drawings Account is used in accounting to track money or assets that the owner withdraws from the business for personal use. This is typically seen in sole proprietorships and partnerships, where the owner and business are not separate legal entities. In contrast, corporations or companies taxed separately treat owner withdrawals as salaries or dividends, not drawings.

Principles of Taxation (PTX)

One way to manage your drawings is by keeping a record of all withdrawals made from each account. This can be done manually using a notebook or spreadsheet or through online banking platforms that allow you to view transaction history and print statements. The effect of drawings on financial statements is a reduction in retained earnings. Retained earnings refer to profits earned by a company that are not distributed as dividends but are kept within the company for future growth or use.

Drawings in accounting are an essential concept to learn when it comes to understanding how a business’s finances are managed and how the company is taxed. By monitoring the amount of money being taken out of the company, business owners can better understand the financial health of their business. This can be especially beneficial for small business owners needing access to more sophisticated financial tracking systems. The amount of money or assets (money’s worth) drawn from a business by an owner for personal use is called Drawings.

Business Drawing occurs when an owner extracts funds or assets from the business for personal use. Unlike a salary—compensation for services rendered as an employee—a drawing involves withdrawing from the business’s accumulated profits. Angela Boxwell, MAAT, brings over 30 years of experience in accounting and finance.

What is a “Drawing” from the Business?

They do not affect the business expenses on the profit and loss account (income statement). Drawings data inform owners and accountants about how much capital is being extracted from the business. High drawings compared to profits may signal liquidity pressure or unsustainable cash outflows. Accurate recording of drawings helps enforce financial discipline and supports the accounting principle that the business and owner are separate entities. Under IFRS for SMEs §2.12, this separation is required even when legal ownership overlaps.

Chief Financial Officer (CFO) Salary: Latest Trends of 2025

• In a sole trader arrangement, the business and the owner are considered a single entity.
• By following best practices and being cautious with personal withdrawals, owners can help maximize overall revenue and potentially contribute to the business’s success.
• Failure to record them may overstate capital, leading to inaccurate solvency ratios.
• Business drawings do not impact the income statement directly since they are not considered expenses.
• This is one of the most common methods to identify transactions related to the expenses or revenue.
• An owner withdrawal would normally be noted as a debit on your balance sheet.

The Income Statement is a financial statement showing a company’s revenues and expenses over a year, typically one year. Drawing balances are not considered part of the company’s regular drawing definition in accounting income and expenses, so it is not included in the Income Statement. Instead, drawing balances are reported on the company’s Balance Sheet as an equity account. This helps ensure that the company’s financial statements accurately reflect its performance and profitability. Drawings allow business owners to withdraw funds from a company without paying taxes and provide incentives to stay invested in their business. Accountants must be aware of these regulations when preparing drawings for their clients to ensure accuracy and familiarity with the law.

Journal Entries and Bookkeeping

After this transaction, the owner’s equity in Terry’s business would decrease by £1,000. Since drawings are not expenses, they never appear in the profit and loss statement. This aligns with the Entity Concept and ensures that business profits reflect only operating activities.

Moreover, this separation minimises the risk of mistakenly using funds for the business on personal expenses. Although drawings can resemble loans, it’s important to remember that they are not formal loans. Instead, drawings represent the owner’s personal use of company assets and don’t typically involve interest or repayment terms in the same way as a loan would. Capital drawings refer to withdrawing cash from the business that is used to acquire assets or make long-term investments.

A Drawing Account Has the Following Benefits:

By effectively managing drawing accounts, businesses can maximize revenue and enhance overall success. Drawings in accounting are a critical concept that often goes overlooked in the broader discussion of financial statements and business operations. Essentially, drawings refer to the money or other assets that the owner withdraws from the company for personal use. This action directly affects the owner’s equity in the business, as it represents a reduction in the investment the owner has in the company.

Example of a Drawing Account in Journal Entry

• If the owner (L. Webb) draws $5,000 of cash from her business, the accounting entry will be a debit of $5,000 to the account L.
• This action directly affects the owner’s equity in the business, as it represents a reduction in the investment the owner has in the company.
• Distributions are recorded separately from drawings and reflect the actual profits distributed to the partners.
• Drawings are the withdrawals of a sole proprietorship’s business assets by the owner for the owner’s personal use.
• They appear as a debit to a drawing account and credit to cash, bank or asset.

Drawings reflect the ongoing relationship between business ownership and personal use. They reduce equity but leave profit untouched, ensuring that financial performance remains distinct from personal withdrawals. These accounts, like inventory, accounts receivable, and accounts payable, carry their balances forward from one accounting period to the next without being closed.

That’s where Drawings in Accounting come in helping you separate business and personal finances effectively. The owner’s drawings of cash will also affect the financing activities section of the statement of cash flows. (If an asset other than cash is withdrawn, it is reported as supplemental information on the statement of cash flows.) If the owner (L. Webb) draws $5,000 of cash from her business, the accounting entry will be a debit of $5,000 to the account L.

This ensures that the business records the fair value of private use as a reduction in ownership capital rather than a business expense. According to IAS 2 Inventories, such goods are removed from business stock at cost value and recorded as drawings, ensuring that gross profit is not overstated. The owner withdraws $5,000 from the business bank account for personal use. When the owner withdraws cash, it reduces the cash balance of the business. This reduction in cash is reflected in the statement of cash flows under the financing activities section. The amount of the transaction is recorded in both the debit and credit columns.

ABC Partnership pays Rs.5,000 every month to each of its two partners, and this transaction is recorded as a 10,000 INR credit to the cash account and a 10,000 INR debit to the drawing account. This has resulted in a total draw of Rs.120,000 from the partnership by the end of the year. The accountant transfers this money to the owners’ equity account by crediting the drawing account with Rs.120,000 and debiting the owners’ equity account with Rs.120,000.

Discover the ins and outs of drawings in UK accounting with our comprehensive guide. Learn what drawings are, their significance in financial management, and more. Following these best practices will help ensure proper management of drawing accounts and contribute to accurate financial records. Hence, it can’t be treated as an item that belongs to the nominal account.