China’s Commerce Ministry held calls with the American Chamber of Commerce in China and the European Union Chamber of Commerce in China last week to discuss trade and business issues related to the coronavirus outbreak, according to an unofficial translation of a March 13 ministry notice. China said the calls, which included more than 200 member companies, were intended to address any problems for companies facing delays in resuming production and trade in China, which the ministry said should resume “as soon as possible.” The sides also discussed China’s economy, “corporate assistance policies, labor shortages, inadequate epidemic prevention materials, and logistics.”
China’s Commerce Ministry said the coronavirus pandemic will have an “unavoidable” impact on its supply chains and the global economy but reassured industry that the changes will not be permanent. “Global economic and trade growth is under pressure. The resumption of production and new orders by Chinese foreign trade companies will also be affected,” a ministry official said, according to an unofficial translation of transcript of a March 12 press conference. “The supply chain of the global industrial chain will be disrupted to some extent.”
China introduced new customs measures to reduce clearance costs of imports and exports amid the coronavirus outbreak, according to a March 12 report from the Hong Kong Trade Development Council. The changes, introduced March 10, mean some imports that arrived at ports before the outbreak, and other imports that were not declared in time due to logistical challenges, will benefit from reductions or exemptions in delayed declaration fees, China said. In addition, companies who cannot pay import taxes on time can submit an application to the customs authority with a “proposed tax repayment schedule,” the report said.
Japan and South Korea held an export control policy dialogue March 10 (see 2002210021) to discuss controls on sensitive technologies and concerns surrounding a trade dispute stemming from last year (see 1907010020), Japan’s Ministry of Economy, Trade and Industry said, according to an unofficial translation. Japan said it pushed for “improved” measures surrounding “trade control and technology transfer management in both countries.” The two sides will continue meeting to try to resolve their dispute, discuss “country categories, conventional weapon catch-all systems” and more, Japan said.
China will lift restrictions on imports of certain U.S. nectarines, China’s General Administration of Customs said in a March 4 notice, according to an unofficial translation. China said it will allow nectarines (see 2003100045) that meet certain “quarantine requirements” and published phytosanitary requirements for those imports.
China said it does not think the coronavirus outbreak will cause supply chains to leave the country and have a sustained impact on China’s supply chain base, a Foreign Ministry spokesperson said during a March 11 press conference. “The COVID-19 epidemic only affects the Chinese economy in a temporary and limited manner,” the spokesperson said. He added that industry “still has confidence in China's economic prospects and the resilience of our supply and industrial chains,” and said China hasn’t “seen any major movement of supply and industrial chains from China to other countries due to the epidemic.”
U.S.-China trade tensions have “greatly affected” orders for Vietnamese garment and textile companies, according to a March 10 report from CustomsNews, the mouthpiece for Vietnam Customs. Despite the tensions, “customers of many companies still took priority to choose Chinese producers because of their advantages on production technique, infrastructure and complete value chain,” the report said. “This is a cause leading to shortage of orders in the short term for Vietnamese companies.” Vietnamese companies are also competing for orders with countries “which have lower costs,” including Bangladesh, Cambodia and Pakistan.
Japan recently removed “seasonal restrictions” on the import window of U.S. chipping potatoes and lifted the two-month maximum storage restriction, according to a U.S. Department of Agriculture Foreign Agricultural Service report released March 6. The changes, which took effect last month, were the result of 15 years of discussions between the USDA and Japan in which the U.S. tried to “demonstrate that the limited trade window was not a phytosanitary-based restriction, but rather a technical barrier to trade.”
Cambodia recently issued guidance about its online portal for registering investment projects, including information for import clearances, according to a March 5 KPMG post. The guidance provides information on the launch of “master list” applications in the portal and clarified that the portal will “facilitate the clearance of imports of construction materials, production machinery and equipment, spare parts, and raw materials” used for certain investment projects, KPMG said.
In an annual report about China's compliance with its World Trade Organization commitments, the U.S. trade representative repeated complaints from last year's report (see 1902050024) about how U.S. imports are treated by Chinese customs authorities.