American Trade & Manufacturing Blog

Tag Archives: China

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

Who Manipulates Their Currency? Treasury says No One.

Posted in Manufacturing, Trade Agreement Compliance, World Trade Organization
On October 16, the U.S. Department of the Treasury released its Semi-Annual Report to Congress on International Economic and Exchange Rate Policies.  The report considers whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in… Continue Reading

CAP Issue Brief Highlights State Interference in China’s Financial Markets

Posted in Trade Policy
The Center for American Progress (CAP) has published the second in a series of issue briefs on China’s economic reform agenda under the leadership of President Xi Jinping and Premier Li Keqiang.  While the first brief discusses the challenges and contradictions of the reform plan announced shortly after the Third Plenum in 2013, the second,… Continue Reading
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