Though allegations that China’s “retreat” from previous commitments in the trade talks with the U.S. were the Trump administration’s grounds for hiking the List 3 Section 301 tariffs to 25 percent and proposing a fourth tranche of duties on remaining Chinese imports not previously dutied, it was the U.S. side that actually reneged, suggested a Chinese Foreign Affairs Ministry spokesperson May 16. “It takes sincerity to make a consultation meaningful,” the spokesperson said during a press conference. “Judging from what the U.S. did in previous talks, there are two things we have to make clear,” he said. “First, we need to follow the principle of mutual respect, equality and mutual benefit. Second, words must be matched with deeds. Flip-flopping is the last thing we need.” During the various rounds of trade negotiations, the U.S. “repeatedly rejected rules in consultations and brought difficulties to the talks, while China, on the other hand, has been acting in a constructive spirit all along,” he said. “The international community bears witness to all this.” The Office of the U.S. Trade Representative didn’t comment.
Exports to China
China plans to hit a wide range of goods from the U.S. with 10 percent tariffs in response to the Trump administration's increase in tariffs on Chinese goods (see 1905130002). Among the major items by value targeted by China on its 10 percent tariff list are food preparations in 2106.90.90, lasers other than laser diodes in 9013.20.00, and cast glass sheets in 7003.19.00. The tariffs are scheduled to take effect June 1.
China plans to hit a wide range of goods from the U.S. with 20 percent tariffs in response to the Trump administration's increase in tariffs on Chinese goods (see 1905130002) Among the major items by value targeted by the Chinese on its 20 percent tariff list are machines and mechanical appliances in 8479.89.99; parts of diodes, transistors and similar semiconductor devices in 8541.90.00; other optical instruments in 9031.49.90; and North American hardwood in 4403.99.60. The tariffs will take effect June 1.
China’s recently issued exclusion process for duties on more than 5,000 tariff lines of U.S. products (see 1905130043) shows it is prepared for a “long-term fight” and may be getting ready to “hunker down” in the trade war with the U.S., said Pete Mento, vice president for Crane Worldwide Logistics.
In the May 13 edition of the Official Journal of the European Union the following trade-related notices were posted:
Export Compliance Daily is providing readers with some of the top stories for May 6-10 in case they were missed.
The Commerce Department's Bureau of Industry and Security added 12 foreign entities or persons to BIS’s Entity List, according to a May 13 notice, including several entities in China. BIS said the additions include four entities with locations in China and Hong Kong, along with two other entities in China and one Pakistani entity and five entities or individuals in the United Arab Emirates. Each is now subject to specific license requirements “for the export, reexport, and/or in-country transfer of controlled items,” BIS said. The 12 "have been determined by the U.S. Government to be acting contrary to the national security or foreign policy interests," the agency said in a separate notice.
China will raise tariff rates on 5,140 tariff lines of U.S. goods in response to the latest escalation in the trade war, the Chinese Foreign Ministry announced May 13. The tariff increases mostly follow the lists China released last year in response to U.S. plans to add tariffs on $200 billion worth of goods from China (see 1905130002). The retaliatory tariffs were implemented last year at lower rates than were initially announced. China now plans to increase those retaliatory tariffs on June 1.
There seems to be a growing interest in ways to evade U.S. sanctions and export controls, several experts said while speaking at a House Foreign Affairs subcommittee hearing on May 9. One panelist specifically pointed to China, which he said he expects to begin smuggling oil from Iran to avoid U.S. sanctions.
The European Union said it would “reject any ultimatums” imposed by Iran after the country announced May 8 it is suspending some of its commitments under the Joint Comprehensive Plan of Action, effective immediately (see 1905080058). In a May 9 statement, the EU said it has “great concern” over Iran’s demands and “strongly” urged it to “refrain from any escalatory steps,” but also said it disapproves of U.S.-imposed sanctions on Iran following U.S. withdrawal from the JCPOA.