Tariff exemptions will ease impact of US trade frictions on enterprises

China Plus Published: 2019-09-11 22:26:59
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Note: The following article is taken from the Chinese-language "Commentaries on International Affairs."

The Customs Tariff Commission of China's State Council has unveiled its initial set of lists of U.S. products to be excluded from the first round of the additional tariffs that will be effective from September 17, 2019 to September 16, 2020.

This is the first time that China has released a tariff exemption list since the United States began escalating the economic and trade frictions between the two countries. The exemptions will help to minimize the impact of the trade dispute on related import enterprises in China, and reflect Beijing's determination to deal with the dispute in a way that protects the public interest.

[File Photo: VCG]

[File Photo: VCG]

Over the past year or so, in response to Washington's escalating unilateralism and protectionist practices, China has introduced three rounds of countermeasures in order to defend the country's core interests and safeguard its legitimate right to development. These countermeasures are expected to have negative impacts on some enterprises in China, but Beijing is doing its utmost to limit these impacts while at the same time respond firmly to bullying by the United States.

In recent months, China's government has reviewed applications from companies seeking exemptions from additional tariffs on goods from the United States. According to the Customs Tariff Commission, two lists of 16 items will be excluded from the first round of tariff countermeasures. Exclusions were considered in instances where it is difficult for an enterprise to find a supplier in another country, the tariffs would have a significant adverse economic impact on an enterprise, or the tariffs would have a negative structural impact on related industries.

Nearly 300 valid applications seeking tariff exemptions have been approved, accounting for around one-third of the total number of applications. Affected companies that are eligible for tax refunds will also be allowed to apply for refunds of collected duties.

The Customs Tariff Commission says it will continue to work on the exemption process and release subsequent lists in due course.

The 13th round of trade talks between China and the United States is due to start in Washington D.C. early next month. Companies in both China and the United States are expecting both sides to make a concerted effort to strive for substantive progress to be made in this round of negotiations. Hopefully, they won't be disappointed. But regardless of the outcome of the talks, China will continue to use all of the policy tools at its disposal to reduce the impact of the trade frictions on enterprises, and respond to any challenges that lie ahead.

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LU Xiankun Professor LU Xiankun is Managing Director of LEDECO Geneva and Associate Partner of IDEAS Centre Geneva. He is Emeritus Professor of China Institute for WTO Studies of the University of International Business and Economics (UIBE) and Wuhan University (WHU) of China and visiting professor or senior research fellow of some other universities and think tanks in China and Europe. He also sits in management of some international business associations and companies, including as Senior Vice President of Shenzhen UEB Technology LTD., a leading e-commerce company of China. Previously, Mr. LU was senior official of Chinese Ministry of Commerce and senior diplomat posted in Europe, including in Geneva as Counsellor and Head of Division of the Permanent Mission of China to the WTO and in Brussels as Commercial Secretary of the Permanent Mission of China to the EU. Benjamin Cavender Benjamin Cavender is a Shanghai based consultant with more than 11 years of experience helping companies understand consumer behavior and develop go to market strategies for China. He is a frequent speaker on economic and consumer trends in China and is often featured on CNBC, Bloomberg, and Channel News Asia. Sara Hsu Sara Hsu is an associate professor from the State University of New York at New Paltz. She is a regular commentator on Chinese economy. Xu Qinduo Xu Qinduo is CRI's former chief correspondent to Washington DC, the United States. He works as the producer, host and commentator for TODAY, a flagship talk show on current affairs. Mr. Xu contributes regularly to English-language newspapers including Shenzhen Daily and Global Times as well as Chinese-language radio and TV services. Lin Shaowen A radio person, Mr. Lin Shaowen is strongly interested in international relations and Chinese politics. As China is quite often misunderstood in the rest of the world, he feels the need to better present the true picture of the country, the policies and meanings. So he talks a lot and is often seen debating. Then friends find a critical Lin Shaowen criticizing and criticized. George N. Tzogopoulos Dr George N. Tzogopoulos is an expert in media and politics/international relations as well as Chinese affairs. He is Senior Research Fellow at the Centre International de Européenne (CIFE) and Visiting Lecturer at the European Institute affiliated with it and is teaching international relations at the Department of Law of the Democritus University of Thrace. George is the author of two books: US Foreign Policy in the European Media: Framing the Rise and Fall of Neoconservatism (IB TAURIS) and The Greek Crisis in the Media: Stereotyping in the International Press (Ashgate) as well as the founder of chinaandgreece.com, an institutional partner of CRI Greek. David Morris David Morris is the Pacific Islands Trade and Investment Commissioner in China, a former Australian diplomat and senior political adviser. Harvey Dzodin After a distinguished career in the US government and American media Dr. Harvey Dzodin is now a Beijing-based freelance columnist for several media outlets. While living in Beijing, he has published over 200 columns with an emphasis on arts, culture and the Belt & Road initiative. He is also a sought-after speaker and advisor in China and abroad. He currently serves as Nonresident Research Fellow of the think tank Center for China and Globalization and Senior Advisor of Tsinghua University National Image Research Center specializing in city branding. Dr. Dzodin was a political appointee of President Jimmy Carter and served as lawyer to a presidential commission. Upon the nomination of the White House and the US State Department he served at the United Nations Office in Vienna, Austria. He was Director and Vice President of the ABC Television in New York for more than two decades.