The largest trade war begins, the US second list or the black hand on the integrated circuit

Abstract: Today, the United States officially began to impose a 25% import tariff on 818 categories and $34 billion of Chinese products on the first list. China has adopted a strategy of retaliation, and the largest trade war in economic history has officially started. .

Set micro-network news (text / Xiaobei) The United States at 0:01 am on July 6th, Eastern Time (Beijing time at 12 o'clock) officially began to add 185 categories on the first list, $ 34 billion of Chinese products added 25 % of import tariffs, China immediately imposed tariffs on some goods imported from the United States. The largest trade war in economic history has officially started.

Yesterday, China and the United States made separate speeches. A spokesperson for the US Trade Representative Office (USTR) said that the US Customs and Border Protection Agency has received instructions to start tariff collection. Once the public comment period is completed, the Trump administration will be the fastest. In August, an additional tariff of US$16 billion on Chinese exports was imposed. China’s Ministry of Commerce spokesperson said at the press conference that China promised not to shoot the first shot, but in order to defend the country’s core interests and the interests of the people, Not forced to make the necessary counterattacks.

On August 14, 2017, US President Trump issued a memorandum instructing the US Trade Representative to launch a survey on China 301. On June 15 this year, the US Trade Representative Office (USTR) issued two copies of 301 for Chinese imports. The article investigates the list of special tariffs. Starting from July 6, 2018, more than 800 Chinese products are subject to an additional 25% tariff when importing into the United States. Another US trade representative will later cover about 300 articles. A list of tariff purposes is further reviewed to determine if additional tariffs will be imposed on these products. The two lists cover products imported from China worth approximately $50 billion.

The first list was adjusted based on the list of 1,333 product plans announced in March, removing 515 products with relatively low technical content and retaining 818 products, mainly in inorganic chemicals, electromechanical and optoelectronic products. 9 major categories of products. The US's intention to combat 'Made in China 2025' was reflected in the adjusted first list, focusing on China's mechanical and electrical products. Meanwhile, the 86th product (mainly related to railway vehicles and their zeros) The parts are completely reserved, which reveals the US concerns about China's railway construction.

The second list or 284 new products will be added, and further tariffs will be required after further hearing and review. The taxation items in Listing 1 are mainly PVD equipment and testing equipment. It is reported that List 2 has supplemented this. Or include precision instruments and equipment. At the same time, list 2 mainly adds taxes on integrated circuits, fiber optic cables, electric vehicles and components, instrumentation, petrochemicals and other fields.

The second list contains 284 committees that are determined by the 301 committee of federal agencies to benefit from the industry policy included in the Made China 2025 industry policy. These industry series cover approximately $16 billion worth of products imported from China, and Further review will be conducted during the public notice and comment process, including public hearings. Upon completion of this process, the US Trade Representative will issue a final decision on the products in this list, and it has been determined whether these products will be subject to additional tariffs.

Therefore, although the second product list does not yet have to pay a 25% surcharge in July, after the notice and comment period, they may be subject to Section 301 and therefore apply the tariff. The second list is related to the public comment process. The timetable is still unclear, but we can expect it to come out soon. Affected parties should also be prepared to submit comments and participate in various hearings.

The US Trade Representative also pointed out that relevant entities can exclude production from these tariffs by way of application. As more detailed information about the program is released by the US Trade Representative, Chinese exporters should seize the opportunity to import with the US. Business cooperation, if a product is not produced in the United States, or production is insufficient to meet the requirements of the United States, it may be subject to tariff exemption.

In response to the US move, China adopted a strategy of retaliation. In March and April, respectively, two plans were published for the US 232, 301 survey, and its product list was also adjusted. The State Council Tariff Commission is now in force. The counter-production list issued on the night of June 16, 2018, and will impose tariffs on US$50 billion worth of imported goods originating in the United States, including 545 kinds of agricultural products such as soybeans originating in the United States, automobiles, and aquatic products. It is reported that the second list is intended to impose a 25% import tariff on 114 kinds of commodities imported from the United States, such as chemicals, medical equipment and energy products. The amount of imports from the United States in 2017 is about 16 billion US dollars. And the effective time is still uncertain.

2016 GoodChinaBrand | ICP: 12011751 | China Exports