The US will abolish tariffs in stages, which is good news for Chinese chemical companies.
The State Council Information Office held a press conference at 23:00 PM on December 13, announcing that China and the United States have reached agreement on the text of the first-phase economic and trade agreement. At the press conference, Ning Jizhe, vice Minister of the National Development and Reform Commission, Liao Min, Vice Minister of the Office of the Central Financial and Economic Commission and Vice Minister of Finance, Zheng Zeguang, Vice Minister of Foreign Affairs, Han Jun, Vice Minister of Agriculture and Rural Affairs, and Wang Shouwen, Vice Minister of Commerce and Deputy Representative of international trade negotiations answered questions.
China and the United States agreed on the text of the first phase of a trade agreement
The agreement, reached by China and the United States on the basis of equality and mutual respect, took 22 months. The text of the agreement includes nine chapters of preamble, intellectual property rights, technology transfer, food and agricultural products, financial services, exchange rate and transparency, expanded trade, bilateral assessment and terminal settlement, and final articles. At the same time, the two sides reached an agreement that the US side will fulfill its commitment to remove tariffs on Chinese products in a phased manner, so as to realize the shift from raising tariffs to lowering them. This agreement will have a positive impact on global trade, investment and financial markets.
宁吉喆 deputy director of the National Development and Reform Commission, said the expansion of china-us trade cooperation, to meet the growing demand for a better life, Chinese people in energy, manufactured goods and agricultural products, medical, financial, and other fields to expand imports from the high quality products and services, and bring Chinese consumers purchase more convenient, more affordable price, species more abundant experience. Expanding China-Us trade cooperation is in line with China's demand for high-quality economic development. Expanding the import of domestically needed advanced technology and equipment and key parts and components will not only meet the production needs of domestic enterprises, but also help Chinese enterprises make more effective investment at a higher level.
Expanding the import of services from the US will also help domestic service companies enhance their competitiveness and further improve the quality and level of service supply. Expanding china-us trade cooperation will help optimize resource allocation and economic restructuring. The growth of China-Us trade to this scale is due to the strong complementarity between the Chinese and US economies. To meet the growing consumer demand of the Chinese people and promote high-quality economic development, China welcomes high-quality and competitive American products and services to enter the Chinese market.
The US side has promised to cancel some of its proposed and existing tariffs against China
Deputy Finance Minister Liao Min said that as the two sides reached the first stage of the agreement, the US side had promised to remove some of the proposed and existing tariffs on China and increase exemptions on Chinese imports to the US.
On this agreement and consensus, China has the following views:
First, this agreement serves the interests of the Chinese and American people and the people of the world.
Second, the agreement is generally in line with China's general direction of deepening reform and China's own inherent need to promote high-quality economic development.
Third, with the continuous mining in China's domestic market potential and the expansion of the market capacity, companies in China, including state-owned enterprises, private companies and foreign companies, according to the world trade organization (wto) rules, follow the principle of marketization, commercialization, to expand bilateral trade cooperation and activities, this can let tens of thousands of Chinese consumers and producers can enjoy different characteristics of products and services, better meet the Chinese people the growing demand for a better life.
Fourth, the signing of the agreement and its future implementation will be conducive to promoting the economic and trade cooperation between China and the United States, managing and resolving economic and trade differences, and promoting the steady development of China-Us economic and trade relations. The second stage of the negotiations will depend on the first phase of protocol implementation liao min said that the second stage consultation agreement implementation will depend on the first stage, the two sides had just on a first stage agreement, currently it is imperative that the agreement signed off, to carry out the good, when to start, when to subsequent consultations to both sides to discuss further. It is understood that the US side is also holding a press conference and is expected to announce relevant information
People from all walks of life in the United States spoke highly of the agreement reached between China and the United States on the text of the first-phase economic and trade agreement
In response, people from all walks of life in the US spoke highly of the agreement. They believe that the agreement has successfully reversed the trend of escalating economic and trade frictions, is beneficial to the two countries and the global economy, and has laid a good foundation for the follow-up negotiations. The first phase of the agreement has also been welcomed by many trade associations in the United States.
"It's an early Christmas present." Tom Watkins, a consultant with the China Innovation Center in Michigan, United States, said that we are pleased to see that the first phase of the economic and trade agreement has achieved a win-win situation and laid a foundation for further negotiations between the two countries. Robert Kuhn, President of the U.s.-based Kuhn Foundation, said that while the road has been long and bumpy, the agreement is good for both sides and for the world. He said the agreement was "prudent and balanced" for both sides and paved the way for further agreement on more difficult issues.
Wendy Cutler, vice President of the Asia Society, says the first-phase agreement is welcome because it will go a long way toward reversing the weakening bilateral trade relationship and reducing the trade policy uncertainty that U.S. businesses fear. Rick Helfenbein, President of the American Apparel and Footwear Association, said it was "a step in the right direction." But he also noted that US businesses, consumers and workers were still being "hit hard" by the tariffs and called on the US government to eliminate all of them as soon as possible. Kenneth Queen, President of the World Food Prize Foundation, said a major deal that benefits both sides would be welcomed by American farmers, Chinese consumers and food processors. Above all, it will make an important contribution to ensuring the stability of the global trading system.
The elimination of tariffs is the core issue, and the global chemical industry may be in for a big boost
At the press conference, Liao said the abolition of tariffs is the core concern of China in economic and trade negotiations and the two sides have reached agreement on the issue. The US side has promised to cancel some of the tariffs it intends to impose and has already imposed on China, and will increase its exemption of tariffs on Chinese imports from the US, so as to push forward the trend of tariff increases from upward to downward. This is a commitment and a definite one. At the same time, The Chinese side will consider not to implement the additional tariffs on US imports that are scheduled to take effect on December 15. This is the agreement reached between the two sides in the first phase of the agreement on tariffs.
Expanding China-Us trade cooperation is in line with China's demand for high-quality economic development. Expanding the import of domestically needed advanced technology and equipment and key parts and components will not only meet the production needs of domestic enterprises, but also help Chinese enterprises make more effective investment at a higher level. Expanding the import of services from the US will also help domestic service companies enhance their competitiveness and further improve the quality and level of service supply.
At the same time, it should be noted that China is an important export market for the United States, and expanding china-us trade cooperation is also of positive significance to the United States. China is the second largest export market for US agricultural products, the first largest export destination for US soybeans and the second largest export destination for US cotton. Thanks to the shale oil and gas revolution, the US has significantly increased its oil and gas production. It also needs to explore the international energy market and increase its energy exports. It is also a realistic choice for the US to expand china-us cooperation in the energy field.
Since the US government announced tariffs on imports of soybeans, chemicals, automobiles and other goods from China, the chemical industry around the world has been affected to varying degrees, causing great harm to American businesses and workers. U.S. stocks fell off a cliff as American apparel, chemicals, footwear, automobiles, agricultural products and other industries contracted and jobs were lost. According to the analysis of insiders, the domestic chemical industry may usher in a favorable situation, and the export of products will usher in a new situation, which can promote the chemical industry raw materials and other high-quality products to go abroad and promote economic development. Not only the domestic chemical industry, even the global chemical industry will usher in a good new situation.
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With the approval of the State Council, the Tariff Commission of the State Council has announced a 25% tariff increase on 659 items of us $50 billion imported from the United States, including 545 items of US $34 billion worth of agricultural products, automobiles and aquatic products, starting from July 6, 2018.
The US Customs and Border Protection has announced that the US will impose 25 per cent import duties on the first batch of $34bn worth of Chinese goods in 818 categories starting on July 6 local time. In response, China will impose an import tariff of 25 per cent on us products of the same size on the same day.
The Tariff Commission of the State Council of China has decided to impose tariffs of 25 percent, 20 percent, 10 percent and 5 percent on 5,207 items of US $60 billion imported from the United States.
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The US government has officially announced that, effective May 10, 2019, it will raise the tariff rate on imports of us $200 billion of goods from China from 10 percent to 25 percent.
On May 13, China announced that from June 1, it would raise taxes on $60 billion of goods subject to 5% and 10% tariffs to 10%, 20% and 25%.
On August 15, 2019, the US announced the imposition of 10% tariffs on us $300 billion worth of Chinese goods in two batches, to be implemented on September 1 and December 15.
On August 23, 2019, China announced additional tariffs of 5% and 10% on US goods worth $75 billion.
China and the United States agreed to phase out the tariffs as the agreement progresses. Gao Feng, spokesman for the Ministry of Commerce, said China's position on tariffs is consistent and clear. A trade war starts with the imposition of tariffs and should end with the abolition of tariffs. As for the number of phase I cancellations, they can be agreed on the basis of the content of the phase I agreement.
The two leaders of the High-Level Economic and Trade Consultation called and agreed to keep in touch on the remaining issues of the first phase of the agreement.
China and the US have reached agreement on the text of the first phase of the economic and trade agreement on the basis of equality and mutual respect after the joint efforts of the two countries' economic and trade teams.