JAKARTA (TheInsiderStories) – The Chinese State Council continues to extend the 25 percent retaliation rate for vehicles and auto parts from the United States (US) starting April 1. This extension was a positive reaction to America’ decision to delay the increase in China’ import tariffs of US$200 million, said an official statement on Monday (01/04).
The State Council said China temporarily suspended an additional 25 percent tariff on 144 US-made cars and spare parts and an additional 5 percent tariff applied to 67 imported US auto parts will be suspended, while the 15 percent tariff applied to all imported cars will remain in place.
The Council considers that the move aims continued to create a good atmosphere for ongoing trade negotiations between the two sides after a trade ceasefire.
In addition, this suspension was made to implement the consensus reached by the presidents of the two countries in Argentina in December 2018 and continue to create a positive atmosphere for economic consultation and bilateral trade.
In February 2019, US’ President Donald Trump delayed plans to increase tariffs on Chinese imports worth $200 billion into effect March 1, due to “substantial progress” made in trade negotiations between the two countries.
Previously, Trump administration imposed a $200 billion tariff on Chinese goods last year in a long-standing trade dispute, which China answered with its own tax penalties.
Senior officials said US and Chinese talks will continue this week in Washington DC, after last week took place in Beijing. Chinese Deputy Prime Minister Lui He will travel to meet with US Trade Representative Robert Lighthizer and Finance Minister Steven Mnuchin.
Hopefully, the new agreement can end the trade war, but the tariff will remain valid, at least for the time being.
In Beijing last week, the US and China were negotiating written pacts in six fields: forced technology transfer and cyber theft, intellectual property rights, services, currencies, agriculture, and non-tariff barriers to trade. Both parties claimed progress, but did not elaborate in the brief report.
Amid uncertain negotiations to end a trade war with the US, Chinese Prime Minister Li Keqiang said China’ economy showed signs of stability, although new threats emerged from weakening global demand.
Factory activity in China grew unexpectedly for the first time in four months in the March 2019 period. Official and private surveys show government stimulus measures might begin.
The private survey findings show that manufacturing companies hired employees in March for the first time in more than four years, reversing the condition of relentless termination of employment since October 2013.
China will also continue their policies as long as the main economic indicators remain within the range suitable for the whole year.
According to President, China’ good economic performance is not the result of quantitative easing or massive stimulus. This month, the Chinese government launched a tax deduction of 2 trillion Yuan and has sought to increase the supply of credit for small businesses and the private sector.
Written by Staff Editor, Email: firstname.lastname@example.org