China Retaliates Against US With Tariffs, Trade Restrictions
Moments after President Donald Trump’s 10% tariffs on all Chinese products took effect Feb. 4 (see 2502030034), China announced new tariffs and export controls against the U.S. and added two American companies to its so-called unreliable entity list, including one that it accused of adopting “discriminatory measures” when sourcing products from China's Xinjiang region.
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The new Chinese duties, effective Feb. 10, will place a 15% tariff on eight products, including certain coal and liquefied natural gas imports, and a 10% tariff on nearly 75 products, including certain imports of crude oil, agricultural machinery, large-displacement cars and pickup trucks, according to an unofficial translation. China’s finance ministry said the measures were in response to the “unilateral imposition of tariffs” by the U.S., which “seriously violates the rules of the World Trade Organization. It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US.”
The new export controls, effective Feb. 4, target certain minerals, including items related to tungsten, tellurium, bismuth, molybdenum and indium. Exporters will need to apply for licenses before shipping the goods, China’s Ministry of Commerce said.
Beijing also added PVH Group, which owns Calvin Klein, Tommy Hilfiger and other major fashion retailers, and Illumina, a biotechnology company, to its unreliable entity list for violating “normal market trading principles,” adopting “discriminatory measures against Chinese companies” and more.
China began investigating PVH in September after receiving reports that the company took “discriminatory measures” against products from Xinjiang in the past three years (see 2409240003). The ministry didn’t provide more information this week, but it said both companies were added to the list pursuant to China’s Anti-Foreign Sanctions Law, which prohibits businesses and people from complying with certain foreign sanctions targeting China.
The U.S. has sanctioned a range of Xinjiang-related companies and officials in recent years, and it also requires companies to comply with restrictions on certain imports from Xinjiang that it said are presumed to be made with forced labor.
An Illumina spokesperson said the company complies "with all laws and regulations" wherever it operates. "Illumina has a long-standing presence in China, where we serve the local market through our advances in genomics that help improve human health," the person said in a Feb. 4 email. "We are assessing this announcement with the goal of finding a positive resolution. In the meantime, we are committed to continuing to serve global health.
PVH didn’t respond to a request for comment.