Monthly Archives: June 2019

CNBC report: China’s factory activity in June was lowest since January.

June 30, 2019 By in PMI, Uncategorized Tags: , , , 1 Comment
person using forklift

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A recent CNBC article citing the Caixin/Markit factory Purchasing Managers’ Index for June was 49.4. PMI scores of 50 or above indicate expansion where as below 50 signals a reduction. 49.4 is the lowest the PMI has been since January of this year. In May, the PMI reading was 50.2. China’s official PMI index was also 94.4 in June.

To determine PMI, the official PMI looks at big businesses and state-owned enterprises whereas the Caixin looks at smaller and medium-sized firms.

Will post July numbers as they become available.

Will the new US/China trade war truce lead to a trade deal?

June 30, 2019 By in Uncategorized Tags: , , , , , , , , , 1 Comment
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Two big newsworthy events happened over the weekend at the G20 summit. First, Trump said US companies could supply to Huawei (waiting for official guidance at the moment) and second, the US and China agreed to not enact any further tariffs (current proposed Section 301 List 4 duties) in the near future and to start a new round on trade talks.

This may sound like Groundhog Day, and it partially is. Last year at the Argentina G20 summit, Trump and Xi also reached a similar agreement. And the differences that prevented a deal to be reached in Argentina also exist today. Key issues such as intellectual property and China’s 2025 plan are two areas where the two countries still do not reach a consensus.

With an election looming a little over a year away, Trump may be waiting until after next November before moving forward with a final deal – in the meantime, Trump says the US is already benefiting from the tariffs as the US is “taking in a fortune”.

If you have any questions about any of the 232 or 301 duties and how they may impact your business. Contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

Breaking news – Trump allows US companies to sell to Huawei.

June 29, 2019 By in BIS, Huawei, Trump, Uncategorized Tags: , , , , Leave a comment
Donald_Trump_official_portrait

Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

In comments at the G20 Summit, Trump was quoted as saying:

“One of the things I will allow, however, is, a lot of people are surprised we send and we sell to Huawei a tremendous amount of product that goes into the various things that they make. And I said that that’s okay, that we will keep selling that product. These are American companies… that make product and that’s very complex, by the way, and highly scientific. And in some cases we’re the ones that do it, we’re the only ones that do it. What we’ve done in Silicon Valley is incredible, actually and nobody has been able to compete with it, and I’ve agreed and pretty easily, I’ve agreed to allow them to continue to sell that product. So American companies will continue and they were having a problem, the companies were not exactly happy that they couldn’t sell because they had nothing to do with whatever it was potentially happening with respect to Huawei, so I did do that.”

Based off Trump’s comments, hardware components from US companies such as Intel and Micron can continue to sell to Huawei.

Will post more official verification as soon as it becomes available.

If you have questions about the Huawei BIS entity ban, contact experienced export compliance attorney David Hsu by phone/text at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

US China Truce (for now)?

June 29, 2019 By in China, China tariffs, trade agreement, trade war, Uncategorized Tags: , , , , , Leave a comment
Donald_Trump_official_portrait

Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)

At this week’s G20 meeting, President Donald Trump and China’s Xi Jinping agreed to a temporary truce and restart trade talks. This means the current U.S. tariffs will remain in place, but the trade penalties proposed for Section 301, List 4 will be put on hold pending an outcome of what will be the 12th round of trade talks.

List 4 covers approximately $300 billion in goods from China, and if in place, Lists 1-4 effectively cover every import from China.

However, both sides still differ on one item that may prevent a long term solution – trade secrets.

In response, China has also placed tariffs on $110 billion in US goods, mostly focusing on agricultural imports. Some believe the tariffs against farm products (and Trump supporters) are aimed towards pressuring Trump as he heads into the general election next year.

If you have goods under List 3 and want to file an exclusion, contact David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

“Teardown” of Huawei P30 Pro highlights US parts content of Huawei phones.

June 29, 2019 By in entity list, Huawei, Uncategorized Tags: , Leave a comment
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According to the folks at Android Authority, citing a Nikkei conducted teardown of Huawei’s new flagship device, revealed that only 0.9 percent of the components in a P30 Pro come from the US – in other words, only 15 US parts out of a total of 1,631 parts.

Dollar wise, the total US components cost $59.36 out of the $363.83 total component price. The parts from the US include the DRAM from Micron, parts from Skyworks, Qorvo and the Gorilla Glass from Corning.

China Commerce Ministry begins anti-dumping investigation on synthetic rubber products from the US, EU and South Korea.

June 28, 2019 By in tires, Uncategorized Tags: , , , Leave a comment
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China’s Commerce Ministry said they will begin an anti-dumping investigation on imports of a synthetic rubber product from the United States, South Korea and the European Union. The investigation of ethylene propylene diene monomer rubber (EPDM) was started by the request of Jilin Petrochemical and Shanghai Sinopec Mitsui Elastomers Co. Ltd. EPDM is commonly used in electric cables and tires.

Shipments of EPDM from the US, South Korea and the EU account for about 80% of China’s overall EPDM imports.

Jilin and Shanghai Sinopec claim the prices of EPDM from the U.S., South Korea and European Union are below the prices of the product in the Chinese markets, and the dumping into China had caused harm to them.

While our firm does handle antidumping actions initiated by the US Department of Commerce, I thought it was interesting to read about China initiating an antidumping investigation on US goods.

Chinese drone manufacturer DJI to shift some production to America.

June 27, 2019 By in Drone, Made in USA, Uncategorized Tags: , , , 1 Comment
black dji mavic drone

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Well known Chinese drone manufacturer – DJI will shift some production to the US to counter growing skepticism from the Trump administration. The Trump administration has suspected the flying drones could be used to send surveillance data back to China.

DJI announced they would open a production facility in Cerritos, California to assemble a version of their drone that is popular with federal and other government agencies. Known as the “Government Edition”, the new drones can only save data on the drone itself and not transmit any data, additionally, the information saved on the drone can only be accessed once the drone lands – there is no ability to wirelessly transmit information through the drone.

With a 70 percent market share for all drones in the US, it is no wonder DJI is taking great effort to be on the good side of the Trump administration.

Do you say your goods are “Made in the USA”? That’s great, and if you do, be sure you meet all the requirements to say your goods are “Made in the USA”. Contact country of origin expert David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com for a free no cost or obligation consultation.

Nokia looking to benefit from Huawei ban.

June 27, 2019 By in Huawei, Nokia, Uncategorized Tags: , , , Leave a comment
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According to Tommi Uitto, President of mobile networks at Nokia, Nokia has signed 43 commercial 5G deals while Nokia has signed 50.

At the end of March, Nokia had 30 contracts while Huawei had 40, indicating Nokia has been winning more 5G customers than Huawei. Specifically, Nokia has been expanding its 5G business in Australia, New Zealand and the US – where Huawei’s 5G involvement is limited after their inclusion on the BIS entity list.

While the Huawei ban may help in some markets, Uitto indicates the ban may increase Huawei’s aggressiveness in other markets in countries where they can compete.

Facebook no longer allow pre-installation on Huawei smartphones.

June 27, 2019 By in entity list, Huawei, Uncategorized Tags: , , , Leave a comment
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As reported by CNN Hong Kong, Facebook has stopped allowing Huawei to preinstall the Facebook application on Huawei smartphones in response to Huawei’s inclusion on the BIS entity list.

Huawei is the second largest smartphone brand in the world (behind Samsung) and the target of a US export ban. The US is concerned Huawei equipment can be used for Chinese spying, a claim vehemently denied by Huawei. Any US firms that supply to Huawei will need a license in order to export software, goods or service to Huawei.

If you have any questions about how the Huawei export ban may impact your business, contact experienced export compliance attorney David Hsu at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

CBP Beagles find Giant African snails.

June 27, 2019 By in CBP, Uncategorized, USDA Leave a comment
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Image of Giant African Snails, source: cbp.gov

Two CBP beagles and CBP Agriculture Specialists found live Giant African Snails in a suitcase along with fruits and vegetables in another.

Seized food products are destroyed and the snails were sent to the U.S. Department of Agriculture for further evaluation. In both instances, the travelers were not penalized, but warned and advised of the proper declaration of pests and agriculture products.

A quick Google search found a link to an US Department of Agriculture website discussing the Giant African Snail. The snails were first found in Florida in the 1960’s and after 10 years and a $1 million dollars, they were eradicated. Unfortunately, the snails were reintroduced to the US in 2011 and are currently being eradicated. The USDA claims snails consumer over 500 types of plants and can damage plaster and stucco while also caring a parasite that causes meningitis in humans.