Latest news with #MOFCOM
AllAfrica
4 days ago
- Business
- AllAfrica
China's playbook for 90-day trade truce with US
The United States and China extended their trade truce by 90 days on Tuesday (August 12), a trade war ceasefire that will buy time for each to restructure their supply chains in case negotiations collapse in November. After US President Donald Trump signed an executive order on Monday extending the deadline for higher tariffs on China until November 10, the Chinese Ministry of Commerce (MOFCOM) issued a reciprocal statement saying it would suspend additional tariffs on US goods for 90 more days. Both sides said they would maintain 10% tariffs on each other's goods. However, the US will continue a 20% tariff on Chinese goods related to alleged fentanyl trafficking and 7 to 25% tariffs imposed in the 2019 trade war. This means that Chinese manufacturers need to pay tariffs as high as 55% on certain of their exports to the US. The MOFCOM said on Tuesday that China will extend for 90 days the suspension of measures under the Unreliable Entity List Working Mechanism, issued on April 4, and also suspend the measures issued on April 9. On April 4 and 9, the MOFCOM added 17 US entities to the Unreliable Entity List, prohibiting them from engaging in import and export activities related to China and from making new investments in the country. On January 2, it added 28 US companies to its export control list, prohibiting the export of dual-use items, including key critical minerals. The truce's extension was not unexpected. US Treasury Secretary Scott Bessent said on July 30 that the two sides would probably extend it for 90 days, pending Trump's final approval. 'China is like a multi-level chess game, because traditionally, our biggest economic rivals have been our allies,' Bessent told Fox News in an interview on Tuesday. 'China is our biggest economic rival and our biggest military rival. So we're solving for several variables here. What we are trying to do is to get to a more balanced trade.' He said that most outside observers believe China has the most imbalanced economy in modern times, overgeared on manufacturing rather than domestic consumption. He added that US and Chinese officials will discuss that imbalance in the coming months. He said that Chinese President Xi Jinping has invited Trump to visit China, and Trump has expressed a desire to meet with Xi. The meeting has not been confirmed. Bessnet said that although China has resumed shipping rare-earth magnets to the US, the US government is actively seeking to source rare earths elsewhere by investing in the Mountain Pass rare earth mine and working with six to seven smaller companies. Since Trump imposed reciprocal tariffs on all countries on April 2, tensions between the US and China have increased. A week later, the US imposed 145% tariffs on Chinese goods, while China retaliated with 125% tariffs on US goods. After officials from the two sides met in Geneva on May 12, in London on June 6-9 and in Stockholm on July 28-29, they agreed to de-escalate the situation, which global markets reacted to favorably. 'During the tariff war in the past three months, the biggest achievement is that both China and the US have clarified their respective demands and bottom lines,' Song Guoyou, deputy director at the Center for American Studies, Fudan University, told China's state-run Global Times in an interview. 'This has facilitated communication between the two sides towards further controlling the conflict,' he said. 'After three rounds of negotiations, the Sino-US trade tensions have temporarily eased,' said Liao Shuping, a senior researcher at the Bank of China Research Institute. 'Although China's exports to the US showed signs of recovery, they still face downward pressure.' Liao said that the fact that the US has recently reached agreements with some trading partners to increase tariffs and restrict their re-exports would create new pressure on Chinese exports to non-US markets. On July 2, the US and Vietnam reached a trade agreement under which the US will charge a 20% tariff on imports from Vietnam. However, Vietnam is required to pay a 40% tariff on goods deemed as 'transshipped' to the US. Reports from Vietnam indicate US criteria for what would be considered transshipment are unclear in their trade deal. In recent years, Vietnam has been the top choice for Chinese manufacturers to relocate their factories. These manufacturers send their goods from China to Vietnam for 'origin washing,' simply by changing product labels to 'Made in Vietnam' before shipping them to the US. Some may set up assembly factories in Vietnam, but still, a majority of their components come from China. Liu Yue, deputy director at China's Academy of Macroeconomic Research (AMR), and Yuan Qian, a researcher at the AMR, co-wrote an article on August 6 stating that China encourages and supports Chinese manufacturers to move overseas. They said the relocation should be of high quality, meaning that manufacturers should localize their workforce, understand local markets, and invest in research and development. They said China's professional groups and industry associations should also support companies going overseas. China's state media widely circulated Liu's article. Zheng Yijun, the general manager of a Chongqing-based logistics firm, told state-owned Phoenix TV that when the US imposed 145% tariffs on imports from China, many Chinese manufacturers accelerated their plans to move to Vietnam, creating new logistics demand for his firm. 'Although the United States' reciprocal tariff is now 10% on Chinese goods, exporters still need to pay an extra 30-45% tariff,' he said, adding that logistics demand to Vietnam from Chinese firms has remained strong. A Guangdong-based columnist says that many Chinese manufacturers are reducing headcounts and wages as they either relocate outside of China or receive fewer orders than in the past. He said many workers' salaries have been cut in half to 3,000 yuan (US$418) a month, as many Chinese manufacturers have relocated their factories overseas. The writer says living on that lower salary in the city is very difficult. Read: Trump's 100% chip tariff to exempt everyone but China
Al Bawaba
5 days ago
- Business
- Al Bawaba
China sanctions two Lithuanian banks in retaliation for EU measures over Russia
ALBAWABA- China has imposed sanctions on two Lithuanian banks, barring them from conducting any transactions or cooperation with Chinese organizations and individuals, in a direct retaliation against the European Union's latest Russia-related sanctions. The Ministry of Commerce (MOFCOM) announced on Wednesday that UAB Urbo Bankas and AB Mano Bankas have been placed on its countermeasures list under China's Anti-Foreign Sanctions Law. The move prohibits any financial dealings, partnerships, or other activities involving the two institutions within China. China sanctions two banks in the EU, fulfilling a promise to retaliate after the bloc targeted some Chinese lenders over Russia's invasion of Ukraine — Bloomberg (@business) August 13, 2025 The decision follows the EU's July 18 move to add two Chinese financial institutions to its 18th round of sanctions targeting entities linked to Russia's invasion of Ukraine. Also Read Elon Musk Grok chatbot faces brief suspension drama on X MOFCOM accused Brussels of 'seriously violating international law' and 'damaging the legitimate rights and interests of Chinese companies.' Both sanctioned banks are based in Lithuania, one of Beijing's most outspoken critics within the EU, and a country previously targeted by Chinese economic measures after strengthening ties with Taiwan. China said the action is intended to 'safeguard sovereignty, security, and development interests' and warned it would respond firmly to any further 'unjustified' sanctions targeting Chinese entities.
Yahoo
04-07-2025
- Business
- Yahoo
A Response from Pernod Ricard in Relation to the Conclusion of China's MOFCOM Cognac Anti-Dumping Investigation
PARIS, July 04, 2025--(BUSINESS WIRE)--Regulatory News: Pernod Ricard (Paris:RI) welcomes the conclusion of China's MOFCOM Cognac Anti-Dumping investigation and agrees to a minimum price undertaking. This agreement does not constitute an acknowledgment of dumping practices. Pernod Ricard regrets the increase in the cost of operating in China but notes that the additional costs arising from the agreed minimum price undertaking are significantly less than would be the case if the provisional Anti-Dumping tariffs had been made permanent. As this process concludes, Pernod Ricard remains committed to long term sustainable growth in China, one of our four Must Win markets, leveraging its market leading position in Cognac, and in International Spirits, that it has successfully built over its decades long engagement in the country. About Pernod Ricard Pernod Ricard is a worldwide leader in the spirits and wine industry, blending traditional craftsmanship, state-of-the-art brand development, and global distribution technologies. Our prestigious portfolio of premium to luxury brands includes Absolut vodka, Ricard pastis, Ballantine's, Chivas Regal, Royal Salute, and The Glenlivet Scotch whiskies, Jameson Irish whiskey, Martell cognac, Havana Club rum, Beefeater gin, Malibu liqueur and Mumm and Perrier-Jouët champagnes. Our mission is to ensure the long-term growth of our brands with full respect for people and the environment, while empowering our employees around the world to be ambassadors of our purposeful, inclusive and responsible culture of authentic conviviality. Pernod Ricard's consolidated sales amounted to € 11 598 million in fiscal year FY24. Pernod Ricard is listed on Euronext (Ticker: RI; ISIN Code: FR0000120693) and is part of the CAC 40 and Eurostoxx 50 indices. View source version on Contacts Florence Tresarrieu / Global SVP Investor Relations and Treasury +33 (0) 1 70 93 17 03Edward Mayle / Investor Relations Director +33 (0) 6 76 85 00 45Ines Lo Franco / Investor Relations Manager +33 (0) 6 49 10 33 54Emmanuel Vouin / Head of External Engagement +33 (0) 1 70 93 16 34 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
04-07-2025
- Business
- Business Wire
Price Undertaking Agreement in China for Rémy Cointreau
PARIS--(BUSINESS WIRE)--Regulatory News: As part of the anti-dumping procedure initiated on January 5, 2024, by the Ministry of Commerce of the People's Republic of China (MOFCOM), Rémy Cointreau (Paris:RCO) announces the conclusion of an agreement between the Chinese authorities and certain cognac producers regarding 'Price Undertaking agreement' applicable to imports of grape-based spirits in containers of less than 200 liters originating from the European Union. Under this agreement, certain cognac stakeholders affected by the procedure commit, each according to their own terms, to comply with a minimum import price in China. In return, the 'definitive' anti-dumping duties that were to be imposed on European exports will not be applied (for reference, the official 'provisional' rate was 38.1% for Rémy Cointreau's cognac division since October 11, 2024, in the form of a guarantee-backed deposit, and was reduced to 34.3% in its final version). This agreement in no way constitutes an acknowledgment of dumping practices. While the commercial terms of this agreement are less favorable than those that were in effect prior to the initiation of the investigation, they nonetheless represent a significantly more favorable outcome, or at the very least, a substantially less punitive alternative, compared to the imposition of definitive anti-dumping duties. At this stage, Rémy Cointreau is still awaiting further details regarding the practical arrangements for implementing this agreement, in order to be able to assess the impacts accurately. Thanks to this agreement, these impacts are expected to be far less restrictive than those initially anticipated at the time of the annual results publication on June 4, 2025, and will enable the strengthening of some investments in China. As a result, Rémy Cointreau will update its annual guidance when publishing first-quarter results on July 25. About Rémy Cointreau All around the world, there are clients seeking exceptional experiences; clients for whom a wide range of terroirs means a variety of flavors. Their exacting standards are proportional to our expertise – the finely-honed skills that we pass down from generation to generation. The time these clients devote to drinking our products is a tribute to all those who have worked to develop them. It is for these men and women that Rémy Cointreau, a family-owned French Group, protects its terroirs, cultivates exceptional multi-centenary spirits and undertakes to preserve their eternal modernity. The Group's portfolio includes 14 singular brands, such as the Rémy Martin and LOUIS XIII cognacs, and Cointreau liqueur. Rémy Cointreau has a single ambition: becoming the world leader in exceptional spirits. To this end, it relies on the commitment and creativity of its 1,856 employees and on its distribution subsidiaries established in the Group's strategic markets. Rémy Cointreau is listed on Euronext Paris.
Time of India
03-06-2025
- Automotive
- Time of India
Diplomats, automakers push Beijing to loosen rare earth magnet export restrictions
Diplomats, automakers and other executives from India, Japan and Europe were urgently seeking meetings with Beijing officials to push for faster approval of rare earth magnet exports, sources said, as shortages threatened to halt global supply chains. A business delegation from Japan will visit Beijing in early June to meet the Ministry of Commerce over the curbs, according to a source familiar with the visit. European diplomats from countries with big auto industries have also sought "emergency" meetings with MOFCOM in recent weeks, a European official said. India, where automakers warned last week they were close to shutting down, is organising a trip for auto executives in the next two to three weeks. "This is an extremely urgent and critical time for the auto and electronics industry ," Adam Dunnett, secretary general of the European Chamber of Commerce in China, told Reuters, saying some firms could stop production as soon as this week. The European Union and Japanese missions in Beijing did not immediately respond to requests for comment. The possibility of widespread shutdowns across the global auto industry demonstrates the enormous leverage Beijing has built over its decades-long rise to dominance in the rare earth industry. China - which controls over 90per cent of global processing capacity for the magnets, used in everything from automobiles and fighter jets to home appliances - imposed export restrictions on seven rare earth elements and several magnets on April 4, requiring exporters to obtain licenses from Beijing. The controls are widely viewed as a key source of diplomatic leverage because there are almost no alternatives outside China. Beijing agreed to suspend or remove non-tariff countermeasures imposed on Washington since April 2 as part of the Geneva truce. But there has only been a slow trickle of approvals since then and Chinese government officials have declined to address the issue publicly. US Trade Representative Jamieson Greer last week accused Beijing of "slow-rolling" the removal of non-tariff countermeasures. South Korea's industry ministry has asked China to issue more export licenses, an official told Reuters, as only a handful of companies had received licenses. China's foreign ministry on Tuesday did not respond to a question on whether Beijing would speed up processing of export license applications. The Ministry of Commerce did not immediately reply to queries sent after business hours. European firms alone have thousands of applications waiting for approval, said a source familiar with the matter. State media reported last week that China was considering relaxing some of the curbs for European semiconductor firms and the Ministry of Foreign Affairs said last week it would strengthen cooperation with other countries over its controls. However, rare-earth magnet exports from China halved in April due to a long and opaque application process for export permits. "China won't blink but it will slowly and strategically provide exemptions," said a US business figure briefed on the matter, who declined to be named for sensitivity reasons. "It's a painful stress test of an already fragile relationship."
