Page 48 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
reporters, “China would like to get somewhat of China Policy of Trump Administration
a rollback, not a complete rollback because they
know I won’t do it.” Among the many themes of Donald Trump’s
presidency, his contentious policies toward
Meanwhile, The WTO said that China could China stick out. US foreign-policy experts have
impose compensatory sanctions on US imports noted that Trump’s three years in office have
worth US$3.6 billion for the US failure to abide witnessed the long-held bipartisan consensus
by anti-dumping rules on Chinese products. on China shift further and faster than in any
The announcement centers on a WTO case that other period in history, leading to a rapid and
originated nearly six years ago, long before the dramatic deterioration of one of the world’s most
trade war. consequential bilateral relationships. Though
there’s broad political agreement on the need for
By the end of the month, the US Commerce the United States to take a tougher line on China,
Department issued a notice introducing a the administration’s mercurial approach has led
new procedure for identifying, assessing, and to criticism from Republicans and Democrats
addressing transactions that pose a national alike. Trump has prosecuted a costly trade war
security risk to its telecommunications network against Beijing, banned Huawei’s technology from
and service supply chain. The procedure will give the US 5G networks, and placed visa restrictions
the US government power to restrict US companies on Chinese Communist Party officials involved
from importing and using foreign technology in in the extrajudicial incarceration of millions of
their domestic supply chain infrastructure. Muslims in Xinjiang. He has marketed himself as
the first U.S. president who is willing to get tough
December 13, 2019 on China. But for China, Trump’s weaknesses
are more important than his bluster. During
China and the US announced that they had numerous off the record discussions with Chinese
reached a Phase 1 trade deal, just prior to new government officials and scholars, an increasing
tariffs coming into effect that would have affected number are hoping for Trump’s reelection next
a mass of consumer goods, including popular year. At a time when China’s political influence
electronics like smartphones and laptops. The and military capabilities are growing, they argue
US agreed not to proceed with 15 percent tariffs that in spite of his anti-China bluster, Trump
on US$160 billion worth of consumer goods has afforded Beijing the space to expand its
scheduled to take effect December 15, and would influence across Asia and, more importantly,
reduce the September 1 tariffs by half, from 15 comprehensively weakened Washington’s global
to 7.5 percent. However, the 25 percent tariffs on leadership. From a zero-sum standpoint, many
US$250 billion of Chinese imports would continue Chinese have concluded that Trump’s policies are
and further reductions would be linked to progress strategically very good for China in the long run
in future trade negotiations. China agreed to (Haenle and Bresnick).
increase the purchase of US goods and services
by at least US $200 billion over the next two Trade War Future
years, suspend retaliatory tariffs also scheduled,
implement intellectual property safeguards, and World trade has recently slowed to a standstill
have a tariff exclusion process in place. It appears amidst heightened uncertainty, contributing to
that among its potential purchases, China would a slowdown in the world economy. In particular,
import US agricultural products worth US$40 the United States and China each has lost about
billion to US$50 billion – in each of the following 0.5 percentage points of gross domestic product
two years. China’s Customs Tariff Commission of (GDP) growth in 2019 and will slow further in
the State Council announced that it had released 2020. More importantly, no progress has been
the second set of US goods to be excluded from made on the two important goals of US President
the first round of additional tariffs. Donald Trump. The US trade deficit with China
has decreased substantially to US$294 billion in
48
reporters, “China would like to get somewhat of China Policy of Trump Administration
a rollback, not a complete rollback because they
know I won’t do it.” Among the many themes of Donald Trump’s
presidency, his contentious policies toward
Meanwhile, The WTO said that China could China stick out. US foreign-policy experts have
impose compensatory sanctions on US imports noted that Trump’s three years in office have
worth US$3.6 billion for the US failure to abide witnessed the long-held bipartisan consensus
by anti-dumping rules on Chinese products. on China shift further and faster than in any
The announcement centers on a WTO case that other period in history, leading to a rapid and
originated nearly six years ago, long before the dramatic deterioration of one of the world’s most
trade war. consequential bilateral relationships. Though
there’s broad political agreement on the need for
By the end of the month, the US Commerce the United States to take a tougher line on China,
Department issued a notice introducing a the administration’s mercurial approach has led
new procedure for identifying, assessing, and to criticism from Republicans and Democrats
addressing transactions that pose a national alike. Trump has prosecuted a costly trade war
security risk to its telecommunications network against Beijing, banned Huawei’s technology from
and service supply chain. The procedure will give the US 5G networks, and placed visa restrictions
the US government power to restrict US companies on Chinese Communist Party officials involved
from importing and using foreign technology in in the extrajudicial incarceration of millions of
their domestic supply chain infrastructure. Muslims in Xinjiang. He has marketed himself as
the first U.S. president who is willing to get tough
December 13, 2019 on China. But for China, Trump’s weaknesses
are more important than his bluster. During
China and the US announced that they had numerous off the record discussions with Chinese
reached a Phase 1 trade deal, just prior to new government officials and scholars, an increasing
tariffs coming into effect that would have affected number are hoping for Trump’s reelection next
a mass of consumer goods, including popular year. At a time when China’s political influence
electronics like smartphones and laptops. The and military capabilities are growing, they argue
US agreed not to proceed with 15 percent tariffs that in spite of his anti-China bluster, Trump
on US$160 billion worth of consumer goods has afforded Beijing the space to expand its
scheduled to take effect December 15, and would influence across Asia and, more importantly,
reduce the September 1 tariffs by half, from 15 comprehensively weakened Washington’s global
to 7.5 percent. However, the 25 percent tariffs on leadership. From a zero-sum standpoint, many
US$250 billion of Chinese imports would continue Chinese have concluded that Trump’s policies are
and further reductions would be linked to progress strategically very good for China in the long run
in future trade negotiations. China agreed to (Haenle and Bresnick).
increase the purchase of US goods and services
by at least US $200 billion over the next two Trade War Future
years, suspend retaliatory tariffs also scheduled,
implement intellectual property safeguards, and World trade has recently slowed to a standstill
have a tariff exclusion process in place. It appears amidst heightened uncertainty, contributing to
that among its potential purchases, China would a slowdown in the world economy. In particular,
import US agricultural products worth US$40 the United States and China each has lost about
billion to US$50 billion – in each of the following 0.5 percentage points of gross domestic product
two years. China’s Customs Tariff Commission of (GDP) growth in 2019 and will slow further in
the State Council announced that it had released 2020. More importantly, no progress has been
the second set of US goods to be excluded from made on the two important goals of US President
the first round of additional tariffs. Donald Trump. The US trade deficit with China
has decreased substantially to US$294 billion in
48
