China will allow imports of fresh citrus products from Chile, China said in a May 14 notice, according to an unofficial translation. The notice provides quarantine requirements for importing “Chilean fresh citrus plants,” including grapefruit, orange and lemon.
Exports to China
China recently cleared more destinations for self-service printing of certificates of origin, according to a May 18 report from the Hong Kong Trade Development Council. The changes add self-service printing certificates for exports to Indonesia, Singapore and India under certain trade agreements. The changes took effect May 11.
China will impose a 6.9% duty on imports of Australian barley after finalizing an antidumping and countervailing duty investigation, China said in a May 18 notice, according to an unofficial translation. China said its domestic industry “suffered substantial damage” due to dumping of imported barley originating in Australia. The move was expected by Australian grain groups (see 2005110010).
The struggle the U.S. is having to manage the COVID-19 pandemic is a higher priority than what's happening at the World Trade Organization, said Dennis Shea, U.S. ambassador to the WTO. He noted that the U.S. has a third of the world's reported cases of the disease, and that more Americans have died from COVID-19 than citizens in any other country.
The Commerce Department amended its direct product rule, increasing restrictions on foreign-made chips exported to, and made by, Huawei and its affiliates, the agency said in a May 15 interim final rule. Commerce also said it does not expect to issue another temporary general license extension for the Chinese technology company after its latest 90-day renewal expires Aug. 13.
China recently announced suspensions of “facilitation measures” intended to simplify customs processes for exports of medical supplies intended for COVID-19 prevention from certain cities, according to a May 15 report from the Hong Kong Trade Development Council. The measures, which featured a “simplified channel for customs clearance of small batch of goods,” can no longer be used by companies to ship medical products. Companies can still import and export the goods through “general trade” methods, the report said.
The Taiwan Semiconductor Manufacturing Corporation will build a chip factory in Arizona in a move expected to boost U.S. semiconductor competitiveness amid the trade war with China. Production is expected to begin in 2024, the TSMC said May 15, and will reach a “20,000 semiconductor wafer per month capacity.”
The U.S. Export-Import Bank focused on 5G during a teleconference on May 14 as part of its “Strengthening American Competitiveness” initiative. Chair Kimberly Reed said EXIM’s goal is that at least $27 billion of the bank’s funds be dedicated to exports that compete directly with China. “For us to be successful … it’s going to be critical for us to achieve tangible results in the form of completed deals that help specific businesses here in America generate exports and support U.S. jobs,” said Senior Vice President-Program on China and Transformational Exports David Trulio: “Economic security is national security.”
Incentives are strong for China and the U.S. to retain the phase one trade deal, an economist at S&P Global wrote May 14, in a report called “U.S. and China Kick Trade Deal Can Down The Road.” While the report's author said it's possible the Trump administration would hike tariffs on China to punish that country for COVID-19, “we have long thought that, from an economic perspective, technology not trade is the core issue in the U.S.-China relationship. Technology has been and will continue to be the key driver of growth in China. It is at the heart of intellectual property, market access, and level playing field debates.” Chief Economist Shaun Roche said the two countries are on a path toward technological decoupling, no matter how the purchases shake out that are promised in the phase one deal.
China will allow imports of U.S. blueberries and barley, the country’s General Administration of Customs said in May 13 notices, according to an unofficial translation. China also issued quarantine and phytosanitary requirements for imports of U.S. alfalfa hay, “almond shell granules” and timothy hay. The measures, which took effect May 13, provide requirements that imports must meet for entry into China. The measures were announced as China tries to fulfill its agricultural purchase commitments under the phase one trade deal, which some say may not be possible due to the COVID-19 pandemic (see 2005130042 and 2005080010).