China released another round of tariff exemptions for certain U.S. imports, according to an unofficial translation of a Dec. 19 notice from China’s State Council Customs Tariff Commission. The waivers will be granted from Dec. 26, 2019, through Dec. 25, 2020, and will include six chemical and oil products, including certain lubricating oils; “adhesive” items; wax; polyethylene; a linear low-density polyethylene; and polypropylene, China said. Tariffs already levied on these imports will not be refunded, according to a Dec. 19 report from Xinhua, China’s state-run news agency. China previously announced tariff exemptions for 16 U.S. goods (see 1909110051), later adding pork and soybeans (see 1909130013). Xinhua said the commission is continuing to “work on the exemption process” and will release “the exemption lists of U.S. goods subject to the second round of additional tariffs in due course.”
China's Foreign Ministry criticized the Commerce Department’s efforts to restrict sales of emerging technologies (see 1912160032), saying the U.S. is “abusing export control measures” and “impeding” cooperation between the two countries. A ministry spokesperson said the U.S. is “over-generalizing” the concept of national security as justification for the export controls, which are aimed at preventing countries, including China, from acquiring access to sensitive U.S. technologies. “Don't think you can ever deter China's growth as well as scientific and technological innovation by limiting exports of high-end technologies to us,” the spokesman said during a Dec. 18 press conference. “You are being too arrogant.”
China plans to issue tariff exemptions to importers of U.S. agricultural goods on a “more regular basis” after the phase one U.S.-China trade deal was reached, according to a Dec. 17 report from Bloomberg News. China announced earlier this month it would be issuing tariff waivers for soybeans and pork (see 1912060033), which are now expected to be “handed out more frequently,” the report said. The move will “make it less punitive” for Chinese importers to buy from U.S. agricultural exports to help fulfill China’s obligations under the phase one deal, Bloomberg said.
Japan and South Korea met Dec. 16 for another export control policy dialogue to discuss their ongoing trade dispute (see 1907010020), Japan’s Ministry of Economy, Trade and Industry said in a press release. Japan said the two sides discussed “circumstances” surrounding critical technology controls and their export control systems, and agreed to continue talks to “contribute to resolving issues of concern.” The meeting was aimed at better understanding each other’s export control measures, Japan said. The two sides previously met for two rounds of consultations at the World Trade Organization (see 1911080022).
Thailand and Hong Kong will soon begin a “pre-negotiation feasibility” study on a potential free trade agreement and hope to begin talks in 2021, according to a Dec. 16 report from the Hong Kong Trade Development Council. The feasibility study is expected to begin in February, the report said. Both countries also recently signed a series of memorandums of understanding aimed at increasing trade, better connecting industries and collaborating on innovation and technology. The two sides also discussed a “higher number” of Hong Kong companies potentially moving production sites to Thailand to avoid tariffs from the U.S.-China trade war.
China suspended its tariff increase on U.S. imports scheduled to take effect Dec. 15, according to a report from Xinhua, China’s state-run news agency. The decision to suspend the tariffs, which resulted from an agreement on a phase one deal between the two sides (see 1912130035), covered a planned 10 percent and 5 percent increase on certain goods, Xinhua said. The country will also “continue to suspend” additional tariffs on U.S. vehicles and auto parts and continue to work on tariff exemptions for certain U.S. imports, including pork and soybeans (see 1912060033).
Laos and Myanmar will officially join the single window for the Association of Southeast Asian Nations after completing a pilot phase, according to a Dec. 15 report from Customs News, the mouthpiece for Vietnam’s customs agency. The two countries are expected to connect to the window this month, the report said.
China recently announced plans to increase penalties for violations of intellectual property rights, according to a Dec. 12 report from the Hong Kong Trade Development Council, an issue at the center of the U.S.-China trade deal negotiations. China will raise its penalty from “three times the actual damages incurred” to “five times the actual damage,” the HKTDC said. The announcement is part of a China initiative to improve intellectual property rights protections in two phases by 2025, the report said.
China’s “advance classification advisory service” for samples of imports will start Dec. 20, according to a Dec. 13 report from the Hong Kong Trade Development Council. The measure will help companies gain a “preliminary ruling” on the classification of commodities for both imports and exports, the report said. To use the service, Chinese importers are required to apply to their local customs office when importing goods that have completed safety and quality assessments “via pre-shipment inspection,” or when importing samples of goods imported at a later date, the HKTDC said.
Cambodia is collaborating with South Korea on a one-year “feasibility study” of a free trade agreement between the two nations, according to a Dec. 12 report from the Hong Kong Trade Development Council. In a joint statement, the countries said a trade deal will “strengthen relations,” promote “service exports” and improve economic growth, the report said. Cambodia mainly exports garments, footwear, electronics, natural rubber and travel accessories to South Korea, while importing South Korean knitted textiles, trucks, electronics, cosmetics and beverages, the report said. All the goods are likely to be impacted by a potential trade deal.