China will continue to suspend tariffs on U.S.-made cars and auto parts past April 1, according to a notice from China’s Ministry of Finance. In December, China originally announced it was suspending additional 25 percent tariffs on U.S. vehicles and parts as a show of good faith as the two countries negotiated a trade deal. The tariff suspension was scheduled to end April 1, but China announced on March 31 that the country would be upholding the suspension to “create a good atmosphere for economic and trade consultations between the two sides,” according to an unofficial translation of the announcement. The Ministry of Finance said it will announce at a later date when the extension will expire.
Exports to China
The government of Canada recently issued the following trade-related notices as of March 29 (note that some may also be given separate headlines):
China overhauled its e-commerce regulations in recent months, upping its de minimis level and adding new responsibilities for logistics providers and foreign suppliers, and also adopted new regulations on foreign medical device facility inspections. Meanwhile, China's General Administration of Customs has recently set new requirements for bonded zones and set lower value-added tax rates for some products. The following is an update on recent customs and trade-related actions by China:
A task force of sanctions policy experts published a list of trends that could have an impact on the future of U.S. sanctions, providing evidence of a U.S. shift toward unilateral foreign policy decisions and warning of unintended consequences from sanctions that are increasingly complex, according to a report commissioned by the Center for a New American Security.
Sanctions on North Korea have not been working, a United Nations Panel of Experts official told a House subcommittee on March 27, adding that North Korea has made no progress toward denuclearization.
The government of Canada recently issued the following trade-related notices as of March 27 (note that some may also be given separate headlines):
The Treasury’s Office of Foreign Assets Control announced a $1.9 million settlement with a Connecticut-based industrial tool manufacturer and its China-based subsidiary after OFAC said the companies violated U.S.-imposed sanctions on Iran, according to a March 27 notice. The U.S. company -- Stanley Black & Decker -- and the Chinese subsidiary -- Jiangsu Guoqiang Tools Co. (GQ) -- attempted to export 23 “shipments of power tools and spare parts” worth more than $3 million to Iran from mid-2013 to the end of 2014, OFAC said.
China's refusal of canola imports from Canada is the result of "precautionary quarantine measures to ensure safety," Foreign Ministry spokesperson Geng Shuang said in a Chinese state media report. China reportedly said recently it would block entry of canola imports from another Canadian firm after previously doing the same to Richardson International (see 1903060058).
The Department of Justice updated its policy manual provisions on Foreign Corrupt Practices Act enforcement to reflect changes in the requirements for retention of business records, according to the department. The new guidance, which took effect March 8, lifts a ban on the use of third-party messaging apps, including WeChat, WhatsApp and Snapchat, according to a report from Skadden Arps. The changes were made in light of “certain fast-growing economies, such as China and India, where WeChat and similar messaging apps are used extensively for legitimate business communications,” the report said.
Chinese Vice Premier Han Zheng said China is looking to expand imports, lower tariffs and “facilitate customs clearance to better share the opportunities” with the rest of the world, according to a March 24 report by Xinhua, a state-run news agency. Speaking at the opening ceremony of the China Development Forum in Beijing, Han also said China will strengthen intellectual property rights protections while also allowing “foreign companies to achieve better development in fair competition” in China, Xinhua’s report said. "We will continue to relax controls over foreign investment access, reduce the negative list for foreign investment, and allow wholly foreign-invested enterprises in more areas," Han said, according to the report. The report also said China will add a new section to the “Shanghai pilot free trade zone” and introduce policies to build a “Hainan free trade port.”