China Announces Taxation List of US$60 Billion Goods

The Customs Tariff Commission of the State Council issued an announcement on August 3rd to impose tariffs of 25%, 20%, 10%, and 5% on 5,207 tax items originating in the United States. The Ministry of Commerce also issued a response on the evening of the 3rd, saying that the implementation date of the taxation measures will be determined according to the actions of the US, and China reserves the right to continue to introduce other countermeasures.

On July 11, 2018, the US government issued measures to impose tariffs on goods imported from China of approximately US$200 million, and solicited public opinions on the measures. On August 2, the US announced that it would increase the tariff rate imposed on the above-mentioned 200 billion US dollars of goods from 10% to 25%.

The State Council Tariff Commission Committee announced that the US measures have deviated from the consensus of the two sides, resulting in an escalation of trade friction between China and the United States, seriously violating the relevant rules of the World Trade Organization and damaging China's national interests and people's interests. "In response to the above measures taken by the US, China is forced to take countermeasures." The announcement said that if the US side insists on its implementation, it will implement the above-mentioned tariff increase measures.

The announcement stated that the Chinese side adopted the above-mentioned tariff-adding measures to defend its legitimate rights and interests and to curb trade friction escalation through counter-measures. At the same time, relevant measures have also minimized the impact on China's domestic production and people's living needs. After the implementation of the above measures, the relevant departments will evaluate the effectiveness of the measures with the community and strive to minimize the impact of the measures on China's domestic production and life.

"China's differential tax rate counter-measures are rational and restrained. They are put forward after extensively listening to opinions and carefully assessing the impact, especially taking into account factors such as the welfare of the people, the endurance of the enterprise, and the maintenance of the global industrial chain. A spokesperson for the Ministry of Commerce said in a speech on the evening of August 3.

According to the tax collection list announced on the day, the goods subject to the 25% tariff on the United States and Canada include beef and mutton, coffee, juice and other foods, as well as quicklime, copper ore, cosmetics, printed matter, textiles, toys, furniture, sporting goods, etc. Products, a total of 2,493 tax items; goods subject to 20% tariffs on the United States and Canada cover part of the machinery, textiles, steel and other categories, a total of 1078 tax items; the United States plus 10% and 5% tariffs on goods involving 974 and 662 tax items, Among them, some goods such as auto parts and medical equipment are subject to a 5% tariff.

Bai Ming, deputy director of the International Market Research Department of the Ministry of Commerce, told the reporter of the Economic Information Daily that the US side’s efforts to raise tariffs on Chinese products is an intensified practice. We are not simply responding by adding tariffs. The specific tariff list and tax rate are carefully considered, which fully reflects the combination of quantity and quality.

Tu Xinquan, president of the China World Trade Organization Research Institute of the University of International Business and Economics, told the Economic Information Daily that the repeated escalation of US unilateral acts is a flagrant violation of the WTO rules. "Currently, we need to calm down at the coping level, and at the same time make the necessary counter-measures, taking into account the impact of counter-measures on domestic industries." Tu Xinquan said.

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