China said it respects World Trade Organization Director General Roberto Azevedo’s decision to resign (see 2005140053) and urged members to keep their markets open and “oppose unilateralism” as the body searches for a new leader. China promised to work with other members to ensure the WTO continues operating after Azevedo’s departure in August, a Commerce Ministry official said during a May 18 press conference, adding that members should “enhance coordination in economic and trade policies to unblock international transport and logistics.” China also said members should focus more on increasing trade of pharmaceuticals and medical supplies.
Exports to China
The struggle the U.S. is having to manage the COVID-19 pandemic is a higher priority than what's happening at the World Trade Organization, said Dennis Shea, U.S. ambassador to the WTO. He noted that the U.S. has a third of the world's reported cases of the disease, and that more Americans have died from COVID-19 than citizens in any other country.
China said it will take countermeasures to respond to increased U.S. export restrictions against Huawei, calling the changes an “abuse of export controls” and a violation of international trade laws. The restrictions, which place a license requirement on shipments to Huawei for foreign-made chips containing U.S. content, are a “serious threat” to China’s chip industry and supply chains, China’s Commerce Ministry said May 17, according to an unofficial translation. The ministry did not specify what the countermeasures will entail, but state media said China is considering placing U.S. companies on its so-called unreliable entity list and stopping purchases of aircraft from Boeing (see 2005150058).
China will impose a 6.9% duty on imports of Australian barley after finalizing an antidumping and countervailing duty investigation, China said in a May 18 notice, according to an unofficial translation. China said its domestic industry “suffered substantial damage” due to dumping of imported barley originating in Australia. The move was expected by Australian grain groups (see 2005110010).
China will allow imports of fresh citrus products from Chile, China said in a May 14 notice, according to an unofficial translation. The notice provides quarantine requirements for importing “Chilean fresh citrus plants,” including grapefruit, orange and lemon.
China recently cleared more destinations for self-service printing of certificates of origin, according to a May 18 report from the Hong Kong Trade Development Council. The changes add self-service printing certificates for exports to Indonesia, Singapore and India under certain trade agreements. The changes took effect May 11.
China recently announced suspensions of “facilitation measures” intended to simplify customs processes for exports of medical supplies intended for COVID-19 prevention from certain cities, according to a May 15 report from the Hong Kong Trade Development Council. The measures, which featured a “simplified channel for customs clearance of small batch of goods,” can no longer be used by companies to ship medical products. Companies can still import and export the goods through “general trade” methods, the report said.
The U.S. Export-Import Bank focused on 5G during a teleconference on May 14 as part of its “Strengthening American Competitiveness” initiative. Chair Kimberly Reed said EXIM’s goal is that at least $27 billion of the bank’s funds be dedicated to exports that compete directly with China. “For us to be successful … it’s going to be critical for us to achieve tangible results in the form of completed deals that help specific businesses here in America generate exports and support U.S. jobs,” said Senior Vice President-Program on China and Transformational Exports David Trulio: “Economic security is national security.”
The Commerce Department amended its direct product rule, increasing restrictions on foreign-made chips exported to, and made by, Huawei and its affiliates, the agency said in a May 15 interim final rule. Commerce also said it does not expect to issue another temporary general license extension for the Chinese technology company after its latest 90-day renewal expires Aug. 13.
The Taiwan Semiconductor Manufacturing Corporation will build a chip factory in Arizona in a move expected to boost U.S. semiconductor competitiveness amid the trade war with China. Production is expected to begin in 2024, the TSMC said May 15, and will reach a “20,000 semiconductor wafer per month capacity.”