American Trade & Manufacturing Blog

Tag Archives: China

ITC begins digital trade investigations as AEI calls for removal of Chinese digital trade barriers

Posted in Trade Policy, World Trade Organization
The U.S. International Trade Commission (ITC) is beginning a comprehensive three-part investigation into digital trade and the impact of digital trade barriers, just as the American Enterprise Institute (AEI) has released a new study calling for a World Trade Organization (WTO) case to be filed against China’s barriers to digital trade and e-commerce. The ITC… Continue Reading

U.S. Trade Representative Notes China’s Lack of Progress on Overcapacity, State-Owned Enterprises

Posted in Trade Agreement Compliance, Trade Policy, World Trade Organization
In a new report on China’s compliance with its WTO obligations, the U.S. Trade Representative (USTR) highlights a number of shortcomings, including industrial overcapacity and the prominence of state-owned enterprises (SOEs).  The report emphasizes that “excess capacity in China . . . hurts U.S. industries and workers not only because of direct exports from China… Continue Reading

China’s Request for Market Economy Status

Posted in Antidumping, World Trade Organization
As anticipated, the Chinese government today requested consultations with the United States at the World Trade Organization (WTO) regarding the use of the “non-market economy” (NME) methodology in antidumping investigations. Wiley Rein represents numerous U.S. industries that oppose China’s request for market economy status. China bases its request on the December 11, 2016, expiration of… Continue Reading

USTR Urged to Re-list Alibaba Group As a “Notorious Market”

Posted in Manufacturing
Today, the United States Trade Representative (“USTR”) concludes its annual collection information from the public regarding markets outside of the United States that should be included in the 2016 “Notorious Markets” List.  Published annually, USTR’s Notorious Markets List identifies both Internet and physical markets that are reported to engage in and facilitate substantial copyright piracy… Continue Reading

The Importance of Being Proactive On CFIUS Issues

Posted in CFIUS
Last Friday, Lexmark International Inc., a U.S. manufacturer of printers and imaging products, announced that its proposed $3.6 billion acquisition by a Chinese consortium has been given the green light by the Committee on Foreign Investment in the United States (CFIUS).  Just over a month ago, on August 22, 2016, CFIUS also approved the $43… Continue Reading

U.S. Lodges WTO Complaint Requesting that China Clear Its Crop Subsidies

Posted in World Trade Organization
On September 13, 2016, the United States filed a complaint with the World Trade Organization (WTO) alleging that China has unfairly subsidized the production of Chinese rice, wheat, and corn. The U.S. government’s complaint takes issue with China’s “market price support” subsidy program, in which the Chinese government sets the minimum price at which it… Continue Reading

Trade Relief on Diamond Sawblades from China Significantly Reduces Unfairly Traded Imports

Posted in Antidumping
The most recent administrative review of the antidumping order on diamond sawblades and parts thereof from the People’s Republic of China resulted in the highest margins to date against imports of such products from China. As a result of the antidumping order, imports of diamond sawblades from China in the recent years have been on… Continue Reading

U.S. G20 Fact Sheet: Mixed Signals on Industrial Overcapacity

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
On September 5, 2016, the White House issued a Fact Sheet summarizing outcomes from the recent G20 summit in Hangzhou, China.  On the issue of overcapacity, the Fact Sheet incorporates language promoted by China leading up to the summit, characterizing “excess capacity in steel and other industries” as “a global issue that requires a collective… Continue Reading

Proposed Electronic Waste Export Legislation Aims to Reduce Counterfeiting

Posted in Uncategorized
In June, the Secure E-Waste Export and Recycling Act, H.R. 5579 (SEERA), was introduced in the House of Representatives amid increased concerns regarding counterfeiting in the global electronics industry, particularly with respect to electronics used in the military. The bill was introduced, in part, in response to a 2012 Senate Armed Services Committee report that… Continue Reading

China Formalizes Political Control Over State Enterprises

Posted in State-owned Enterprises
Last year, we noted that the Chinese government’s reform proposals for state-owned enterprises (SOEs) reflected conflicting objectives.  On the one hand, they appeared to propose limitations on traditional means of state control, primarily ownership, by encouraging more SOEs to undertake “mixed ownership” reforms, through which they would operate more like non-state corporations, at least in… Continue Reading

China Absent from Statement on Steel Overcapacity

Posted in Manufacturing, Trade Negotiations, Trade Policy, Trade Remedies
On April 18th and 19th, leaders from some of the world’s major steel producing countries met in Brussels to discuss the overcapacity problem that is wreaking havoc on the global steel industry. Last night, the governments of Canada, the European Union, Japan, Mexico, Korea, Switzerland, Turkey, and the United States issued a statement agreeing, among… Continue Reading

China’s WTO Subsidy Notifications – The Drama Continues

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Trade Remedies, World Trade Organization
In a World Trade Organization (WTO) submission filed on January 28, the United States once again took issue with the substance of China’s subsidy notifications to the WTO.  The WTO’s  Agreement on Subsidies and Countervailing Measures (SCM Agreement) requires WTO Members to provide annual notifications of any subsidy programs in a manner that is “sufficiently specific… Continue Reading

OFAC Publishes its Much-Anticipated Cyber-Related Sanctions Regulations (Here’s Looking at You, China)

Posted in Economic Sanctions
December 31, 2015: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has published its Cyber-Related Sanctions Regulations, 31 C.F.R. Part 578. These regulations implement the President’s April 2015 Executive Order (E.O.) 13694, which authorizes the imposition of broad economic sanctions on individuals and entities that are deemed responsible for “malicious cyber-enabled activities,”… Continue Reading

USTR Submits Third China Subsidies “Counter-Notification” in Four Years

Posted in Manufacturing, Trade Agreement Compliance, Trade Policy, World Trade Organization
On October 19, the United States Trade Representative (USTR) invoked Article 25.10 of the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) to notify the Chinese government of a list of measures that the United States believes should be reported to the WTO as subsidy programs. This “counter-notification” is the third… Continue Reading

China’s SOE Reform Plan Will Strengthen the Hand of the State

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy
The state-owned enterprise (SOE) reform plan issued recently by China’s State Council and Communist Party leadership has elicited mixed reactions. The consensus seems to be that this most recent proposal is little more than a reiteration of the same contradictory measures that have been in place for more than a decade, which largely failed to… Continue Reading

Treatment of China as a Non-Market Economy Country After 2016

Posted in Antidumping, World Trade Organization
When China joined the World Trade Organization (WTO) in 2001, there was general agreement that because of the Chinese government’s pervasive control over prices, it would be unrealistic to require other WTO members to use Chinese prices and costs in antidumping investigations of Chinese imports. This agreement was embodied in Section 15 of China’s Protocol… Continue Reading

RMB Devaluation Reveals Continued Manipulation of Financial Markets

Posted in Manufacturing, Trade Negotiations, Trade Policy
The People’s Bank of China (PBoC) on Tuesday devalued the country’s currency, the RMB, by approximately 2%.  Just weeks after China’s stock market regulators engineered a “recovery” in share prices by allowing mass-suspensions in trading and forcing state-owned financial institutions to buy and hold shares, the move stands as another stark reminder of the extensive… Continue Reading

China Emphasizes Political Objectives Over Market Principles in New Statements on SOE Reform

Posted in Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
Large portions of China’s economy are dominated by state-owned enterprises (SOEs) and financial institutions that do not operate on the basis of market competition.  Recent official pronouncements make clear that any reforms that may occur in the Chinese economy during the Xi Jinping era will not include relinquishing government control over these SOEs. A widely… Continue Reading

China’s Selective Elimination of Aluminum Export Duties Threatens Global Manufacturers

Posted in Manufacturing, Trade Remedies
Effective May 1, China eliminated a 15 percent export tax on certain semi-processed aluminum bars, rods, and strip. Almost immediately, the London Metals Exchange global aluminum price and share prices of non-Chinese aluminum producers fell, while the share price of China’s major state-owned producer, Chalco, rose by 10 percent.… Continue Reading

Trains, Chips, and Servers: China Moves to Corner the IT Market

Posted in Manufacturing, Trade Agreement Compliance, Trade Negotiations, Trade Policy, World Trade Organization
The China Banking Regulatory Commission (CBRC) has issued a plan calling for “sinification” of the Chinese banking industry’s IT infrastructure, including computers, network equipment, data storage equipment, security devices, software, and other items. The plan would require that 75 percent of this IT infrastructure be Chinese-sourced by 2019.  While this state-mandated shift to domestic products… Continue Reading

China Going Global: A New Challenge for U.S. Manufacturers

Posted in Dumping and Subsidies, Manufacturing, Trade Policy, Trade Remedies
China’s State Council rang in this year’s holiday season by announcing a plan that could bring substantial gifts to certain Chinese manufacturers–as well as substantial challenges to their competitors in the United States.  The plan calls for sweeping measures to support Chinese firms in “going global,” either through exports or by establishing a commercial presence… Continue Reading

Part 2: U.S.-China Economic and Security Review Commission Annual Report Analysis

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Trade Remedies
U.S.-China Commission Highlights Industrial Overcapacity, Stagnant Reforms in 2014 In 2013, there were high hopes that change was on the horizon for many of the issues that have caused tension in the U.S.-China economic relationship.  China’s new president, Xi Jinping, hailed by many as an aggressive and unapologetic reformer, unveiled an agenda at the Chinese… Continue Reading

Part 1: U.S.-China Economic and Security Review Commission Annual Report Analysis

Posted in Dumping and Subsidies, Manufacturing, Trade Agreement Compliance, Trade Policy, Trade Remedies
U.S.-China Economic and Security Review Commission Calls for Action Against Chinese State-Owned Enterprises and Unfair Trade Practices The U.S.-China Economic and Security Review Commission released its annual report on November 20, emphasizing the need for Congress, the Commerce Department, and other U.S. Government agencies to help U.S. firms affected by China’s “anticompetitive” actions and policies.… Continue Reading

United States and China Reach Agreement on Climate and IT Trade

Posted in CFIUS
At the APEC leaders meeting in Beijing on November 10-11, Presidents Obama and Xi Jinping announced that the United States and China had reached an “understanding” that would allow stalled negotiations to expand the Information Technology Agreement (ITA) to proceed.  The two leaders also announced an agreement regarding emissions reductions, pursuant to which the United… Continue Reading
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