Archive for ‘Import’

03/12/2018

Trump says China agreed to reduce tariffs on US car imports

US President Donald Trump, US Secretary of the Treasury Steven Mnuchin and members of their delegation hold a dinner meeting with China's President Xi Jinping and Chinese government representatives, at the end of the G20 Leaders' Summit in Buenos Aires, on December 01, 2018. -Image copyrightGETTY IMAGES

Beijing will “reduce and remove” the 40% tariffs it places on US cars imported into China, US President Donald Trump has said.

China has not commented on President Trump’s announcement, which he made on Twitter without providing details.

The move, if confirmed, would be welcomed by a car industry unsettled by the escalating US-China trade war.

President Trump and Xi Jinping have now agreed to a temporary truce in the bitter dispute.

Over dinner at the G20 summit, they agreed to not increase tariffs for 90 daysto allow for talks.

Failure to strike a deal would have seen tariffs on $200bn worth of Chinese goods rise from 10% to 25% at the start of next year, and would have opened the way for tariffs on additional Chinese goods.

On Monday, China’s foreign ministry said the presidents of China and the US had instructed their economic teams to work towards removing all tariffs following the G20 meeting,

But it didn’t say if that was a plan with specifics or something that was merely desirable.

Asian markets rallied after news of the trade war truce. In China, Hong Kong’s Hang Seng index climbed 2.5% and the Shanghai Composite index jumped 2.6%. Japan’s Nikkei 225 index rose 1%.

The gains spread to Europe, with the UK’s FTSE 100 index, the Cac 40 in France and Germany’s Dax index all up by about 2% in early trade.

The trade war has seen the US and China hit each other with escalating tariffs in an attempt to make their domestically made goods more competitive.

The US says its tariff policy is a response to China’s “unfair” trade practices and accuses it of intellectual property theft.

Since July, the US has hit China with tariffs on $250bn (£195.9bn) worth of goods. China has retaliated with duties on some $110bn of US goods over the same period.

As part of this, the US imposed a 25% tariff on Chinese cars, on top of the 2.5% already in place.

In July, China, which is the world’s largest market for cars, imposed a 40% tariff on US vehicle imports. The rate is much higher than the 15% it places on other trading partners and forced many carmakers to raise prices.

In his tweet, President Trump said Beijing had “agreed to reduce and remove tariffs on cars coming into China from the US”.

He did not provide a new level for the Chinese tariffs, and Beijing did not immediately confirm the statement.

What was agreed at the G20?

In a statement, the White House said US tariffs on Chinese goods would remain unchanged for 90 days, but added: “If at the end of this period of time, the parties are unable to reach an agreement, the 10 percent tariffs will be raised to 25 percent.”

Image captionThe US manufactures cars for export to China, the world’s largest car market

The US said China agreed to “purchase a not yet agreed upon, but very substantial, amount of agricultural, energy, industrial, and other products from the United States to reduce the trade imbalance between our two countries”.

Both sides also pledged to “immediately begin negotiations on structural changes with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft”, according to the White House.

Chinese Foreign Minister Wang Yi told reporters after the talks that “the principal agreement has effectively prevented further expansion of economic friction between the two countries”.

Are tariffs still in place?

Yes. The truce prevents raising tariffs as planned on $200bn worth of Chinese goods.

But it does not remove tariffs that apply to a total of $250bn of Chinese goods targeted since July.

The truce also does not affect the existing duties China has imposed on $110bn of US goods in a tit for tat retaliation.

Will this resolve the dispute?

While the result of the G20 meeting was better than expected, it is unclear how the two countries will manage to resolve their underlying differences.

“There should be no wishful thinking that the truce would end the trade war between the world’s two largest economies,” DBS strategist Philip Wee wrote in a research note.

He said it “remains to be seen if real progress could be achieved during this narrow window to resolve the contentious issues, not just on trade, but also intellectual property”.

Louis Kuijs, head of Asia economics at Oxford Economics, said while the agreement itself was “positive” the next steps remained unclear.

“Whether we will see further de-escalation or whether it is temporary reprieve continues to be very much up to a political decision in Washington DC – that will continue to make this uncertain,” Louis Kuijs, head of Asia economics at Oxford Economics said.

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15/08/2017

China imposes import bans on North Korean iron, coal and seafood – BBC News

China is to stop importing coal, iron, iron ore and seafood from North Korea.

The move is an implementation of UN sanctions, which were imposed in response to North Korea’s two missile tests last month.

China accounts for more than 90% of North Korea’s international trade.

Beijing had pledged to fully enforce the sanctions after the US accused it of not doing enough to rein in its neighbour.

Economic impact

The UN approved sanctions against Pyongyang earlier this month that could cost the country $1bn (£770m) a year in revenue, according to the figures provided to the Security Council by the US delegation.

Although China’s coal imports from North Korea totalled $1.2bn last year, the figure will be much lower this year because China had already imposed a ban in February, experts said.”China has already imported its quota of coal under sanctions for 2017. So no net impact there, and North Korean exports to other countries are minimal,” said David Von Hippel, from the Nautilus Institute -a think tank based in Oregon -who has researched North Korea’s coal sector.

North Korean labourers work beside coal mound near the Yalu River

The sanctions might have more of an impact on iron and seafood, experts said.

Although they are both much smaller sources of export revenue for North Korea, the two industries have seen a rise in exports this year.

Iron ore exports grew to $74.4m in the first five months of this year, almost equalling the figure for all of 2016. Fish and seafood imports totalled $46.7m in June, up from $13.6m in May.

The sanctions do not apply to the growing clothing assembly industry in North Korea.Mr Von Hippel said in gross terms, it is nearly as large as coal, but in reality it is worth much less because North Korea has to import the inputs.

Trade and security tensions

The sanctions come against a backdrop of increased tensions between the US and North Korea, as well as heightened trade tensions between the US and China.

After weeks of heated rhetoric between the US and North Korea, on Tuesday North Korea’s leader Kim Jong-un has decided to hold off on a strike towards the US territory of Guam, state news agency KCNA reported.

The apparent pause in escalating tensions comes after US President Donald Trump warned of “fire and fury like the world has never seen” if Pyongyang persisted with its threats.

On Monday, the US President Donald Trump ordered a trade probe into China’s alleged theft of US intellectual property, which the Chinese state press saw as an attempt to force China to act more decisively on North Korea.

Officially, the US has denied any link between the two issues, although the president had previously suggested he might take a softer line on China in exchange for help on North Korea.

Source: China imposes import bans on North Korean iron, coal and seafood – BBC