Page 18 - 2019 White Paper on the Business Environment in China
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9 White Paper on the Business Environment in China
Trade Dispute Timeline • File a WTO case against China for their discriminatory
licensing practices;
The tension between President Trump and China
started long before he announced his candidacy for • Restrict investment in key technology sectors; and
president. Trump shared many tweets concerning his
displeasure with the trade deficit such as: “China is neither • Impose tariffs on Chinese products (such as
an ally nor a friend — they want to beat us and own our aerospace, information communication technology
country.” Trumps displeasure became clearer when he and machinery).
said on the campaign trail that, “We can’t continue to
allow China to rape our country and that’s what they’re By the end of March, the US imposed a 25 percent
doing. It’s the greatest theft in the history of the world.” tariff on all steel imports except from Argentina,
The statement is one of many that Trump makes on the Australia, Brazil, and South Korea and a 10 percent tariff
campaign trail about China’s trade practices. on all aluminum imports except from Argentina and
Australia (Wong and Koty).
April-May, 2016: Friendly remarks were made by both
sides during Xi’s visit to Trumps Mar-a-Lago estate in April 2-4, 2018: China strikes back at the US by
Florida where the two leaders agreed to set up a 100 Day imposing tariffs on 128 products including fruit, wine,
Action Plan to resolve trade differences; however, Trump seamless steel pipes, pork and recycled aluminum. The
did not explicitly rule out slapping tariffs on Chinese USTR released an initial list of 1,334 proposed products
goods as a response to the bilateral trade imbalance and subject to a potential 25 percent tariff. China responded
a comparative lack of market access for US companies in with a proposes 25 percent tariffs to be applied on 106
China (Koty, What the Xi-Trump Summit). About twenty products on more goods such as soybeans, automobile,
days later the United States Trade Representative (USTR) and chemicals.
was authorized to investigate whether steel/aluminum
imports pose a threat to national security. By the end April 16-17, 2018: US Department of Commerce
of May, US and China agreed to a trade agreement that decided that the Chinese telecom company ZTE violated
would give US firms greater access to China’s agriculture, US sanctions. US companies were banned from doing
energy, and financial markets, while China gained access business with ZTE for seven years. The next day, China
to sell cooked poultry to the US. However, while the deal announces antidumping duties of 178.6 percent on
eased restrictions for US firms in a handful of industries, imports of sorghum from the US.
it did not tackle the larger structural issues affecting
China-US trade such as China’s technology transfer May 3-7, 2018: US-China engaged in trade talks
requirements and the perceived unequal market access in Beijing, where the US demands that China reduce
for US companies. Furthermore, many of the affected the trade gap by US$200 billion within two years. Talks
sectors already appeared on track to open to foreign ended with no resolution.
participation, while the regulatory status of others
remained unclear (Koty, China-US Trade Deal). May 13, 2018: Trump tweeted “President Xi of China,
and I, are working together to give massive Chinese phone
November 8-10, 2017: Trump paid a state visit to company, ZTE, a way to get back into business, fast. Too
China, and relations seemed warmer, but most observers many jobs in China lost. Commerce Department has been
were not surprised that no significant progress was instructed to get it done!” The president’s tweet came
made on substantive bilateral issues. days after ZTE announced its plans to shut down “major
operating activities”, in China as a result of penalties that
February 7, 2018: The US implemented “global were imposed by the United States (Hernandez).
safeguard tariffs” – placing a 30 percent tariff on all solar
panel imports, except for those from Canada, (worth May 18, 2018: Perhaps as a measure of goodwill,
US$8.5 billion) and a 20 percent tariff on washing China’s Commerce Ministry announced an end to the US
machine imports (worth US$1.8 billion). A month later, sorghum tariffs.
Trump signed a memorandum to:
May 20-29, 2018: US and China decided to push
the hold button on the rising trade war when China
18
Trade Dispute Timeline • File a WTO case against China for their discriminatory
licensing practices;
The tension between President Trump and China
started long before he announced his candidacy for • Restrict investment in key technology sectors; and
president. Trump shared many tweets concerning his
displeasure with the trade deficit such as: “China is neither • Impose tariffs on Chinese products (such as
an ally nor a friend — they want to beat us and own our aerospace, information communication technology
country.” Trumps displeasure became clearer when he and machinery).
said on the campaign trail that, “We can’t continue to
allow China to rape our country and that’s what they’re By the end of March, the US imposed a 25 percent
doing. It’s the greatest theft in the history of the world.” tariff on all steel imports except from Argentina,
The statement is one of many that Trump makes on the Australia, Brazil, and South Korea and a 10 percent tariff
campaign trail about China’s trade practices. on all aluminum imports except from Argentina and
Australia (Wong and Koty).
April-May, 2016: Friendly remarks were made by both
sides during Xi’s visit to Trumps Mar-a-Lago estate in April 2-4, 2018: China strikes back at the US by
Florida where the two leaders agreed to set up a 100 Day imposing tariffs on 128 products including fruit, wine,
Action Plan to resolve trade differences; however, Trump seamless steel pipes, pork and recycled aluminum. The
did not explicitly rule out slapping tariffs on Chinese USTR released an initial list of 1,334 proposed products
goods as a response to the bilateral trade imbalance and subject to a potential 25 percent tariff. China responded
a comparative lack of market access for US companies in with a proposes 25 percent tariffs to be applied on 106
China (Koty, What the Xi-Trump Summit). About twenty products on more goods such as soybeans, automobile,
days later the United States Trade Representative (USTR) and chemicals.
was authorized to investigate whether steel/aluminum
imports pose a threat to national security. By the end April 16-17, 2018: US Department of Commerce
of May, US and China agreed to a trade agreement that decided that the Chinese telecom company ZTE violated
would give US firms greater access to China’s agriculture, US sanctions. US companies were banned from doing
energy, and financial markets, while China gained access business with ZTE for seven years. The next day, China
to sell cooked poultry to the US. However, while the deal announces antidumping duties of 178.6 percent on
eased restrictions for US firms in a handful of industries, imports of sorghum from the US.
it did not tackle the larger structural issues affecting
China-US trade such as China’s technology transfer May 3-7, 2018: US-China engaged in trade talks
requirements and the perceived unequal market access in Beijing, where the US demands that China reduce
for US companies. Furthermore, many of the affected the trade gap by US$200 billion within two years. Talks
sectors already appeared on track to open to foreign ended with no resolution.
participation, while the regulatory status of others
remained unclear (Koty, China-US Trade Deal). May 13, 2018: Trump tweeted “President Xi of China,
and I, are working together to give massive Chinese phone
November 8-10, 2017: Trump paid a state visit to company, ZTE, a way to get back into business, fast. Too
China, and relations seemed warmer, but most observers many jobs in China lost. Commerce Department has been
were not surprised that no significant progress was instructed to get it done!” The president’s tweet came
made on substantive bilateral issues. days after ZTE announced its plans to shut down “major
operating activities”, in China as a result of penalties that
February 7, 2018: The US implemented “global were imposed by the United States (Hernandez).
safeguard tariffs” – placing a 30 percent tariff on all solar
panel imports, except for those from Canada, (worth May 18, 2018: Perhaps as a measure of goodwill,
US$8.5 billion) and a 20 percent tariff on washing China’s Commerce Ministry announced an end to the US
machine imports (worth US$1.8 billion). A month later, sorghum tariffs.
Trump signed a memorandum to:
May 20-29, 2018: US and China decided to push
the hold button on the rising trade war when China
18
