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Epoch Times
23-05-2025
- Business
- Epoch Times
Behind US-China Tariff Tit-for-Tat
Commentary Much of the media focus on the Trump administration's reciprocal tariff policy has been on the progress of tariff negotiations with each U.S. trade partner. With respect to communist China, media headlines in recent weeks have concentrated on the tit-for-tat of tariffs proposed by the United States and 'countered' by China. That eventually led to a temporary tariff de-escalation agreement reached between the two countries in Geneva on May 14. The deal sets the table for comprehensive U.S.–China trade negotiations. They will include non-tariff-related issues that have long been barriers to U.S. companies and products in China—a relatively unreported but key objective of Trump's trade strategy. Let us examine the topic. US–China Tariffs and Counter-Tariffs Re-balancing trade with China has taken center stage in the second Trump administration. The signing of China's response was to impose 15 percent tariffs on U.S. coal and liquefied natural gas, 10 percent tariffs on U.S. oil and agricultural machinery. Related Stories 5/22/2025 5/19/2025 Beijing also implemented non-tariff measures that included launching an antitrust investigation into Google and adding some U.S. companies to its 'Unreliable Entity List.' Companies on that list face penalties and barriers to the Chinese domestic market, including trade and investment restrictions, entry bans, permit revocations, and fines. On March 4, the United States raised tariffs on all Chinese products to 20 percent. China retaliated on March 10, with 10 to 15 percent tariffs on select U.S. agricultural, meat, and dairy products, a suspension of U.S. lumber imports, and a revocation of soybean import licenses for three U.S. firms. On April 2, President Trump signed China retaliated with a 34 percent tariff on all U.S. goods. In addition it added non-tariff measures such as implementing export restrictions on Chinese-controlled rare earth elements—vital for strategic manufacturing processes—and adding more U.S. companies to its Unreliable Entity List. On April 8, in response to this Chinese retaliation, President Trump signed On April 9, he signed China immediately retaliated by raising tariffs on all U.S. exports to a total tariff rate of 147.6 percent, again adding more U.S. companies to its Unreliable Entity List. On May 14, U.S. and Chinese negotiators agreed to a temporary 90-day tariff reduction. The United States reduced its tariffs on Chinese goods from 145 percent to 30 percent, while China reduced its tariffs on U.S. goods from 147.6 percent to 10 percent. China also agreed to suspend various retaliatory non-tariff measures while formal negotiations on a comprehensive trade deal are completed. Chinese Non-Tariff Trade Barriers Chinese retaliation to new U.S. tariffs has included a few non-tariff actions, as identified above. However, the list of non-tariff-related barriers on the United States (and other countries) implemented arbitrarily by China's Ministry of Commerce is extensive, complex, and fraught with peril for companies interested in doing business in China. It is ironic that, despite regular pronouncements from Chinese leader Xi Jinping about steps being taken to 'open China,' the policies and regulations the Ministry of Commerce has implemented over the past 40-plus years have done the exact opposite. Here are some of the more onerous non-tariff measures and practices throttling U.S. and other foreign companies in China, which President Trump's reciprocal tariff policy is attempting to address. State-sponsored Mercantilist Practices The Chinese regime has implemented efforts that violate World Trade Organization rules, agreed to when China joined the WTO in 2001. China heavily subsidizes its state-owned enterprises, in violation of the WTO's Agreement on Subsidies and Countervailing Measures. A 2023 Subsidies allow Chinese companies to undercut the production costs of foreign companies and gain market share domination in various commercial sectors by 'dumping' cheap Chinese goods in countries around the world. A companion practice is China's currency manipulation, which undervalues the yuan to make its exports cheaper. Market Access Restrictions In addition to the arbitrarily maintained Unreliable Entity List noted above, China restricts access to its domestic market through various policies, rules, and blacklists. For example, China has not joined the WTO's Government Procurement Agreement, despite promises to do so. This limits foreign companies' access to China's public procurement market. China routinely blocks agricultural imports—typically without any scientific basis other than claims of pest contamination—as a punitive measure to provide leverage points in diplomatic negotiations. These blacklists are also intended to favor Chinese producers at the expense of foreign entities. On the flip side, China has restricted access to critical raw materials such as rare earth elements, in direct violation of WTO precursor Regulations Foreign companies wishing to do business in China, especially automotive, aerospace, telecommunications, and information technology enterprises, are required to develop joint ventures with Chinese firms. Joint ventures are a key tactic for the mandatory transfer of technology, designs, and trade secrets, reverse engineering of foreign technology and designs, and perpetrating the outright theft of foreign intellectual property of all kinds. Regulations require many foreign companies to contribute proprietary technologies to Chinese national standards maintained by the Standardization Administration of China. Other regulations, such as China's Cybersecurity Law and the Multi-Level Protection Scheme, require foreign companies to store data locally and undergo periodic cybersecurity reviews, which grant Chinese access to proprietary data and records. China also has local content rules that prioritize domestic firms for public contracts and force foreign companies to use locally produced components or services when selling in the Chinese domestic market. Concluding Thoughts U.S. reciprocal tariffs are aimed at solving a long-standing U.S.–China trade imbalance benefiting China at the expense of U.S. producers. While garnering most of the headlines, the tariffs also provide substantial leverage to address many non-tariff barriers to U.S. trade erected by communist China over the years. Pushing China to comply with its original commitments to the WTO and the associated trade practice regimen and addressing the above trade barriers will go a long way toward 'opening China' for real. Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.
Business Times
21-05-2025
- Business
- Business Times
China threatens enforcers of US's Huawei curbs with legal action
CHINA said it could take legal action against anyone enforcing US restrictions on using Huawei Technologies' artificial intelligence (AI) chips, escalating a dispute that's upset a tentative truce on tariffs. 'China believes that the US abuses export controls to contain and suppress China, which violates international law and basic norms of international relations,' the Commerce Ministry in Beijing said in a statement on Wednesday (May 21), adding that this hurt the country's development interests and companies. 'Any organisation or individual that implements or assists in the implementation of US measures' would be subject to the Anti-Foreign Sanctions Law and 'and must bear corresponding legal responsibilities', the ministry said. The statement comes a day after China said the Trump administration undermined recent trade talks in Geneva because it warned that using the Huawei semiconductors 'anywhere in the world' would violate US export controls. The US Commerce Department has changed its wording to say the agency was issuing guidance about the risks of using China's 'advanced computing ICs, including specific Huawei Ascend chips', removing the 'anywhere in the world' reference. The formal guidance, dated May 13, says using Huawei's Ascend chips 'risks' violating export controls. The Chinese Commerce Ministry did not go into detail on how individuals or entities could be punished under the Anti-Foreign Sanctions Law. There's been concern that the legislation created in 2021 could be used against foreign firms operating in China. The law is part of the toolbox Beijing has developed in recent years to push back against US sanctions and trade controls. Beijing has also rolled out an Unreliable Entity List and an Export Control Law. BLOOMBERG
Miami Herald
15-05-2025
- Business
- Miami Herald
China Pauses Sanctions on US Companies in Trade War Climbdown
China has walked back nontariff measures imposed in response to U.S. President Donald Trump's tariff hikes. The suspension, announced Wednesday by the country's Commerce Ministry, covers both trade and investment bans on 17 U.S. companies and a pause on export restrictions involving dual-use civilian-military goods. Newsweek contacted the White House for comment via email. The moves are part of a broader effort to de-escalate the tit-for-tat trade war launched during Trump's first term, which sharply intensified after his April tariff hikes and led to an effective trade embargo on U.S.-China trade. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng reached a temporary deal over the weekend to cut tariffs by 115 percent on both sides. Trump, who hailed the deal as a "total reset," seeks to revive U.S. manufacturing and close the almost $300 billion trade deficit with China-an outcome critics call unlikely given that China exports more than three times as much to the U.S. as Washington exports to Beijing. In the joint statement that emerged from U.S.-China talks in Geneva, Switzerland, China pledged to suspend or cancel nontariff countermeasures it had imposed on the U.S. since April 2. This includes a pause on the investment and trade bans placed on 17 U.S. companies, which were added to the commerce ministry's Unreliable Entity List on April 4 and 9. In a separate statement, the ministry said it would also suspend-again for 90 days-export controls on 28 U.S. entities involving dual-use items, or products with both military and civilian applications, announced on the same two dates. The ministry did not specify which commodities would now be allowed for export. However, it had a separate April 4 notice that banned the export of seven types of rare earths-metallic elements critical to a range of defense and civilian technologies. China dominates the global rare earth supply chain, accounting for 60 percent of production and 90 percent of processing-a stranglehold the U.S. considers a national security risk. China's Commerce Ministry said in a statement: "To implement the consensus reached during the China-U.S. Geneva trade talks, effective May 14, 2025, the measures announced on April 4 … and April 9 … will be suspended for 90 days. "According to the regulations, during the suspension period, domestic enterprises may apply to resume transactions with these entities, and the Unreliable Entity List mechanism will approve applications that meet the conditions." It remains to be seen how trade negotiations will unfold over the next three months. A 10 percent blanket tariff on U.S. goods remains in effect. The U.S., for its part, maintains 30 percent duties on Chinese imports-comprising a 10 percent base tariff applied to most trade partners last month, plus an additional 20 percent penalty over China's role as a major source of chemicals used to manufacture fentanyl. Related Articles Upholding Religious Freedom Abroad Advances America's Vital National Interests | OpinionUS Ally Receives F-35 Boost for Future China FightChina Builds New Structure in Disputed Waters Claimed by US AllyUS Ally Confronts Armed Chinese Ships in Disputed Waters 2025 NEWSWEEK DIGITAL LLC.
Saba Yemen
09-04-2025
- Business
- Saba Yemen
China threatens America to fight to end in tariff war
Beijing - Saba: China has threatened America that it is ready to fight to the end, if the latter is determined to launch a tariff war or trade war. This came in a statement made by Chinese Foreign Ministry spokesman Lin Jian on Wednesday during a press conference in response to a request for comment on the United States' announcement to impose 104 percent tariffs on Chinese goods. In a practical response, the Tariff Commission of the Chinese State Council announced raising additional tariffs on products imported from the United States to 84 percent. China urges the US side to immediately correct its mistakes, remove all unilateral tariffs it has imposed on China, and resolve the disputes in an appropriate manner through dialogue on an equal footing and on the basis of mutual respect. Meanwhile, China's Ministry of Commerce announced the addition of 12 US entities to its export control list, in a move it said was aimed at protecting China's national security and national interests. Six U.S. companies have been placed on the "Unreliable Entity List," which includes companies such as Shield AI, Sierra Nevada, Cyberlux, Edge Autonomy Operations, Group W, and Hudson Technologies. This decision will be enforced as of Thursday. Whatsapp Telegram Email Print
