Taxing Times for China Trade

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What taxes the minds of politicians in many countries is the size of their trade deficit with China (forget the economic benefits of the trade for a minute). For the Chinese government it is the rate of economic growth, and overheating, that is of concern. So bring on some taxes to keep everyone (except the exporters, importers and consumers) happy.

First up is the US, which is again looking to restrict imports of some steel products from China (as it has already done with some paper products). People’s Daily reports:

    “Five U.S. makers of welded steel pipes and the United Steelworkers Union last Thursday filed an application with the U.S. Commerce Department to impose anti-dumping duties of up to 88 percent and extra anti-subsidizing charges on steel pipes from China, which they said are being sold at unfairly low and subsidized prices…Earlier reports said 18 Chinese steel pipe producers have united to fight the U.S. charges, and have appointed John Larose from U.S. law firm Vinson & Elkins LLP’s Beijing Office as attorney…China’s steel products exports surged by 132 percent year-on-year to 21.3 million tons from January to April this year. Exports of steel pipes reached 2.77 million tons, up 120 percent.”

While China will fight on the anti-dumping claims, it will also continue to review and revise its own trade structure to improve its trade balance (and international relations). The Standard reports:

    “[Yao Shenhong, a Commerce Ministry spokesman said] ‘In future we will launch a series of measures to improve import and export tax policies to try to balance our trade’. He had been asked whether further adjustments would come into effect on July 1, as rumored in some circles. On June 1, Beijing began imposing taxes of between 5 percent and 10 percent on exports of more than 80 types of steel products. It has also recently reduced or scrapped value-added tax rebates on a range of energy-intensive products.

More taxing times may lie ahead for others buying from China.

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One Response to “Taxing Times for China Trade”

  1. Finance information » Blog Archive » Taxing Times for China Trade Says:

    […] f between 5 percent and 10 percent on exports of more than 80 types […] Read more at Jeremy Gordon

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