Page 44 - 2020 White Paper on the Business Environment in China
P. 44
0 White Paper on the Business Environment in China
June 2019 gestures, such as Chinese commitments to
purchase US soybeans, pork, ethanol, and other
China releases a policy paper blaming the US agricultural commodities, and the US’ promise to
for stalled trade negotiations, drawing objections ease sanctions on Chinese telecoms equipment
from the US Trade Representative. The Chinese giant Huawei.
government issued travel warning for the US,
saying its citizens had been subject to what it August 2019
called harassment by American law enforcement.
Trump said that tariffs on US$300 billion worth of The US Treasury declared China to be a
Chinese products would take effect "immediately" currency manipulator, after the yuan sunk to 7
if progress wasn’t made at an anticipated against the US dollar – its lowest level in 11 years.
meeting with Xi in Japan at the end of the month. The declaration accuses China of manipulating its
Hundreds of company representatives travel currency “to gain unfair competitive advantage
to Washington to testify against planned tariff in international trade,” and states that the
escalations before the US Trade Representative. US Treasury Secretary will engage with the
Throughout seven days of hearings, many warn International Monetary Fund to eliminate the
that taxing all imports from China would increase advantages created by China’s latest actions.
costs and threaten US jobs. Trump confirms that The People’s Bank of China refuted the claims,
He and Xi would sit down at G20 and added that maintaining that “China has never used and will
trade delegations will be in contact before then. not use the RMB exchange rate as a tool to deal
Trump and Xi reached a trade war ceasefire on with the trade frictions” and that “changes to
the sidelines of G20, delaying planned tariffs on the RMB exchange rate is determined by market
roughly $300 billion worth of Chinese products. supply and demand.” On the same day, August
The two sides agree to restart negotiations that 6, the Ministry of Commerce announced certain
stalled in May. Chinese companies had suspended purchasing
US agricultural products. The statement also
July 2019 made clear that the Customs Tariff Commission of
the State Council would not rule out import tariffs
The Trump Administration exempted 110 on newly purchased US agricultural products.
Chinese products, including medical equipment
for cancer, from the 25 percent tariffs that were The Customs Tariff Commission of China’s
added on July 6, 2018. Commerce Secretary State Council announced US$75 billion in tariffs
Wilbur Ross said the US government would issue on US goods. Five and 10 percent tariffs would
licenses to companies seeking to sell goods to be imposed on 5,078 US goods in two batches.
Huawei where there is no security threat. Ross Trump reacted on Twitter, stating, “American
confirmed that Huawei would remain on the companies are hereby ordered to immediately
Entity List, meaning winning licenses would start looking for an alternative to China”.
require overcoming a presumption of denial, Subsequent reports indicated that this threat was
and said the scope of items requiring licenses based on a controversial interpretation of the
would not change. But less than a week later, US’ International Emergency Powers Economic
President Trump once again threatened to slap Act (IEPA) from 1977. Later, Trump tweeted that
tariffs on another US$325 billion of Chinese the US would increase tariffs on US$300 billion
goods. In the waning days of the month, US worth of Chinese imports that was being tariffed
Trade Representative Robert Lighthizer, Treasury from September 1. And from October 1, 2019, US
Secretary Steven Mnuchin and Chinese Vice tariffs on the remaining US$250 billion of Chinese
Premier Liu He met in Shanghai for two-day trade goods would be increased from 25 to 30 percent.
talks. This is the first face-to-face interaction China’s top trade negotiator Vice Premier Liu
since Xi and Trump met at the G20 Summit, and He called for calm amid the escalation of trade
the first official high-level negotiation since May. war threats. Liu reportedly told an audience that
As most analysts predicted, the talks ended with China “firmly opposes” the recent escalation of
little progress. The talks centered around goodwill the trade war. Liu also said the escalation of the
44
June 2019 gestures, such as Chinese commitments to
purchase US soybeans, pork, ethanol, and other
China releases a policy paper blaming the US agricultural commodities, and the US’ promise to
for stalled trade negotiations, drawing objections ease sanctions on Chinese telecoms equipment
from the US Trade Representative. The Chinese giant Huawei.
government issued travel warning for the US,
saying its citizens had been subject to what it August 2019
called harassment by American law enforcement.
Trump said that tariffs on US$300 billion worth of The US Treasury declared China to be a
Chinese products would take effect "immediately" currency manipulator, after the yuan sunk to 7
if progress wasn’t made at an anticipated against the US dollar – its lowest level in 11 years.
meeting with Xi in Japan at the end of the month. The declaration accuses China of manipulating its
Hundreds of company representatives travel currency “to gain unfair competitive advantage
to Washington to testify against planned tariff in international trade,” and states that the
escalations before the US Trade Representative. US Treasury Secretary will engage with the
Throughout seven days of hearings, many warn International Monetary Fund to eliminate the
that taxing all imports from China would increase advantages created by China’s latest actions.
costs and threaten US jobs. Trump confirms that The People’s Bank of China refuted the claims,
He and Xi would sit down at G20 and added that maintaining that “China has never used and will
trade delegations will be in contact before then. not use the RMB exchange rate as a tool to deal
Trump and Xi reached a trade war ceasefire on with the trade frictions” and that “changes to
the sidelines of G20, delaying planned tariffs on the RMB exchange rate is determined by market
roughly $300 billion worth of Chinese products. supply and demand.” On the same day, August
The two sides agree to restart negotiations that 6, the Ministry of Commerce announced certain
stalled in May. Chinese companies had suspended purchasing
US agricultural products. The statement also
July 2019 made clear that the Customs Tariff Commission of
the State Council would not rule out import tariffs
The Trump Administration exempted 110 on newly purchased US agricultural products.
Chinese products, including medical equipment
for cancer, from the 25 percent tariffs that were The Customs Tariff Commission of China’s
added on July 6, 2018. Commerce Secretary State Council announced US$75 billion in tariffs
Wilbur Ross said the US government would issue on US goods. Five and 10 percent tariffs would
licenses to companies seeking to sell goods to be imposed on 5,078 US goods in two batches.
Huawei where there is no security threat. Ross Trump reacted on Twitter, stating, “American
confirmed that Huawei would remain on the companies are hereby ordered to immediately
Entity List, meaning winning licenses would start looking for an alternative to China”.
require overcoming a presumption of denial, Subsequent reports indicated that this threat was
and said the scope of items requiring licenses based on a controversial interpretation of the
would not change. But less than a week later, US’ International Emergency Powers Economic
President Trump once again threatened to slap Act (IEPA) from 1977. Later, Trump tweeted that
tariffs on another US$325 billion of Chinese the US would increase tariffs on US$300 billion
goods. In the waning days of the month, US worth of Chinese imports that was being tariffed
Trade Representative Robert Lighthizer, Treasury from September 1. And from October 1, 2019, US
Secretary Steven Mnuchin and Chinese Vice tariffs on the remaining US$250 billion of Chinese
Premier Liu He met in Shanghai for two-day trade goods would be increased from 25 to 30 percent.
talks. This is the first face-to-face interaction China’s top trade negotiator Vice Premier Liu
since Xi and Trump met at the G20 Summit, and He called for calm amid the escalation of trade
the first official high-level negotiation since May. war threats. Liu reportedly told an audience that
As most analysts predicted, the talks ended with China “firmly opposes” the recent escalation of
little progress. The talks centered around goodwill the trade war. Liu also said the escalation of the
44
