Australia and China officially agreed to resolve World Trade Organization disputes over Chinese duties on Australian wine and Australian duties on Chinese wind towers, China’s Commerce Ministry said Oct. 22. The two sides “conducted friendly consultations under the WTO framework on WTO dispute” and “have reached consensus on properly resolving them,” a ministry spokesperson said, according to an unofficial translation. “We are willing to work with Australia to continue to meet each other halfway through dialogue and consultation, and jointly promote the stable and healthy development of bilateral economic and trade relations.”
Japan is assessing whether China’s recent export restrictions on certain graphite products (see 2310200030), a key material used to produce batteries for electric vehicles, violated World Trade Organization rules, the country’s chief cabinet secretary told reporters last week, according to an audio translation released by Japan. Japan is “scrutinizing the impact” of the restrictions and is seeking more information from Beijing about the “intention and purpose” of the controls, the secretary said. “Based on WTO international rules, if an unfair measure is taken against Japan, then we have to take appropriate measures based on rules.”
China on Oct. 20 announced new export controls on certain graphite products, placing restrictions on a key material used to produce batteries for electric vehicles. The country's Ministry of Commerce will require companies to secure export licenses for high-purity, high-strength artificial graphite materials and their products, along with natural flake graphite and its products, according to an unofficial translation of a notice.
Australia's antidumping commission recommended against renewing the antidumping duties on wind towers from China when they expire on April 16, 2024. Issuing the findings of a sunset review of the duties on Oct. 16, the commission said that revoking the duties wouldn't cause damage to the domestic industry.
The U.S. should "lift" its newest semiconductor export controls on China "as soon as possible," China's Ministry of Commerce said Oct. 18, according to an unofficial translation. The ministry said the moves abuse export control measures, "generalize the concept of national security" and are "unilateral bullying." The country "will take all necessary measures to resolutely safeguard its legitimate rights and interests." The new controls were announced in two rules by the Bureau of Industry and Security this week (see 2310170055).
Certain logistics companies and other parties that were previously eligible to be importers of record when shipping into Japan may no longer qualify as an IOR after a recent clarification by Japan’s customs authority, DLA Piper said in a client alert last week. The firm said it “may be worth reviewing the existing arrangements used for exporting goods to Japan to confirm who” must pay the Japanese consumption tax, which is done by the IOR, and who will be entitled to claim tax credit for that paid tax.
Logistics companies, especially those based in China, should closely examine their U.S. export control risks, particularly after the Commerce Department added a range of Chinese logistics firms to the Entity List earlier this month for their involvement in microelectronics exports to Russia (see 2310060044), major Asian law firm King & Wood Mallesons said in a client alert last week.
The U.S. decision to add 49 entities, mostly from China, to its Entity List for exporting microelectronics to Russian consignees linked to the Russian defense sector is a "typical act of economic coercion," China's Ministry of Commerce said last week, according to an unofficial translation. The ministry said it opposed the additions, which took effect Oct. 6 (see 2310060044). China called for the immediate cessation of the listings, noting it will take "all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises."
Although the EU, the U.S. and other nations want companies to pursue a de-risking strategy toward China, the Chinese government has a “number of tools” to make Western firms’ de-risking strategies “a lot less attractive to the company,” said Janka Oertel, director of the Asia program and senior policy fellow at the European Council on Foreign Relations. She said Western governments should keep in mind that some companies may not voluntarily choose to de-risk, especially if they're given a convincing business offer from Beijing.
The EU's decision to open a countervailing duty investigation on electric vehicle batteries from China lacks sufficient evidence and violates World Trade Organization commitments, China's Ministry of Commerce said Oct. 4, according to an unofficial translation. The ministry characterized the move as "naked protectionism."