Category Archives: China

US China Truce (for now)?

June 29, 2019 By in 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.

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
woman posing in front of tires

Photo by Tim Savage on Pexels.com

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.

CBP seizes Chinese tires for NHTSA violations.

June 26, 2019 By in NHTSA, tires, Uncategorized Tags: , , , Leave a comment
PHL TIres8 052419

Image of sized tires. Source: cbp.gov

According to a CBP media release, CBP officers in Philadelphia seized tires for violating federal motor vehicle safety standards and regulations. Specifically, the tires were for trailer and mobile home applications and did not contain the mandatory markings that tell important safety information and use for customers. The tires also lacked brand identification that is needed in case a recall occurs.

The media release also further highlights CBP’s function of enforcing the rules and regulations of the National Highway Transportation Safety Administration (NHTSA) in order to ensure the safety of the traveling public.

If you or anyone you know has had a Customs seizure for violations of any type or if you want to ensure your imports are in compliance with the alphabet soup of federal agencies and their endless rules and regulations; contact experienced seizure attorney David Hsu by text/mobile at 832-896-6288 or by email at dh@gjatradelaw.com, attorney.dave@yahoo.com.

China introduces new legislation to placate US IP concerns.

March 17, 2019 By in foreign investment, Uncategorized Tags: , , Leave a comment
great wall of china

Photo by Johannes Plenio on Pexels.com

According to Bloomberg – China’s legislative body has passed new legislation to replace three main laws that impact non-Chinese companies doing business in China:(1) Law of Joint Ventures with Chinese and Foreign Investment, the (2) Law on Foreign-Capital Enterprises and the (3) Law on Chinese-Foreign Contractual Joint Ventures.

To summarize, the new legislation includes: (1) promise of equal support to foreign and domestic firms, (2) equal treatment for license applications, (3) foreign companies can participate in setting industry standards and in government procurement, (4) right of foreign companies to appeal non-security related decisions and (5) a complaints mechanism for foreign companies.

The law was passed on March 15th and will take effect on January 1, 2020. Whether this will impact the current trade negotiations is still yet to be seen.

US Kitchen cabinet companies petition for anti-dumping duties against Chinese cabinet producers.

March 9, 2019 By in ADD/CVD, kitchen cabinet, Uncategorized Tags: , , , , , , Leave a comment
kitchen and dining area

Photo by Mark McCammon on Pexels.com

The American Kitchen Cabinet Alliance (AKCA) filed a petition with the International Trade Commission to impose antidumping duties and tariffs on imports of cabinets from Chinese manufacturers.

The AKCA claims the $10 billion cabinet industry is being harmed by imports of cabinets from Chinese manufacturers. The AKCA claims U.S. cabinet manufacturers have seen poor financial performance despite a 12.5% increase in the number of housing units completed in the U.S. The AKCA blames cheap imports from China for their financial decline.

The petition to the ITC by AKCA claims the kitchen cabinets from China are also sold at a below normal value and the AKCA is requesting an ADD rate of 175.5% to 259%.

If you are an importer or manufacturer of kitchen cabinets and ahve questions how the investigation on kitchen cabinets may impact you, contact attorney David Hsu at attorney.dave@yahoo.com or by text/call at 832.896.6288.

US Trade Commission reverses decision, finds the US tire market IS being harmed by truck and bus imports from China.

February 2, 2019 By in International Trade Commission, Uncategorized Tags: , , , , , , Leave a comment
woman posing in front of tires

Photo by Tim Savage on Pexels.com

Summary of what happened:
On January 30th, the US International Trade Commission (USITC) reversed their earlier decision, finding the US tire market is being harmed by truck and bus imports from China. In short – bus and truck imports from China will now be subject to tariffs. A tariff rate and timeline for imposition of duties was not reported by the USITC.

The USITC released a 62-page determination in response to an order of the U.S. Court of International Trade. Back in November 2018, the USITC remanded the ITC’s decision therefore requiring the ITC to re-evaluate their case.

What caused the reversal?
The five-members of the ITC had changed membership in 2017 when commissioner Scott Kieff left 3 years before the end of his term. President Trump later nominated and the Senate confirmed former President Barack Obama’s nominee to fill the commission – Jason Kearnes.

Jason Kearnes turned out to be the swing vote in the most recent reversal of the ITC decision on bus and truck tires.

Very brief history:
In January 2016, the US Steelworkers filed a complaint that tire imports from China was hurting US industry. After investigating, the ITC voted in February 2017 to NOT impose tariffs. This was a surprise because every other tire investigation led to imposition of duties.The US Steelworkers then appealed the decision to the Court of International Trade and in November 2018, the USITC was forced to re-evaluate their decision. Ultimately in their re-evaluation, the ITC found: “In sum, we find that the significant volume of subject imports, at prices that undersold the domestic like product and depressed domestic prices, adversely impacted the domestic industry. We consequently determine that the domestic industry is materially injured by reason of subject imports.”

Please contact our offices if you have questions on how the most recent ITC decision will effect your company’s imports of bus and truck tries from China. You can call David Hsu at 832-896-6288 at anytime or email attorney.dave@yahoo.com.

 

 

 

 

 

 

US/China trade talks amid new charges against Huawei.

January 29, 2019 By in Huawei, Uncategorized Tags: , , , Leave a comment
black huawei android smartphone

Photo by Alex Fu on Pexels.com

Earlier this week, Chinese Vice Premier Liu He and his trade team arrived in the US to begin negotiations with US Trade Representative Robert Lighthizer. At about the same time of Vice Premier Liu He’s arrival, the US Department of Justice announced charges against Huawei for violations of US sanctions against Iran and among other things, theft of US intellectual property from T-Mobile.

Negotiations are in progress to reach a deal that could prevent an additional 15% tariff (total 25%) on $200 billion worth of goods from China before the March 1st deadline.

Since the truce, China has increased their purchases of American exports, such as soy beans and have also taken steps to crackdown on intellectual property theft. However, the US government is also requesting China open its market and limit government direction for state-owned enterprises (SOE). A change to Beijing’s economic support of certain industries is likely something that will not change.

Check back for the latest news as it becomes available. If you have any export compliance questions or have concerns about compliance with US sanctions, contact trade attorney, David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com.

US/China Meeting Cancelled?

January 25, 2019 By in Uncategorized Tags: , , Leave a comment
two person doing hand shake

Photo by rawpixel.com on Pexels.com

According to CNBC, officials with the U.S. trade representative’s office were supposed to meet with their Chinese counterparts this week to try and resolve some trade differences before the March 1st deadline – but the meeting was cancelled.

An unnamed source claimed the trade planning meeting was cancelled as both sides continue to disagree over the enforcement of intellectual property rules.

As you are aware, one of the US goals with China is to ensure adequate IP protections for US companies operating in China. More specifically, US companies doing business in China are expected to turn over IP to a China joint venture as a condition to doing business in China. The US claims this has resulted in the involuntary transfer of IP that ultimately hurts the US company.

While an unnamed source said a meeting was cancelled, the White House economic advisor, Larry Kudlow claimed there was cancellation and a meeting set for next week is still on schedule.

 

List 3 Exclusion Process?

January 16, 2019 By in exclusion, Uncategorized Tags: , , , , , , , Leave a comment
pile of intermodal containers

Photo by Frans Van Heerden on Pexels.com

Last October, 10 10 senators sent a letter to the United States Trade Representative (USTR) inquiring why a List 3 exclusion process had not yet been established. As you are aware, an exclusion process allows importers or interested parties of goods subject to the Section 301 duties to petition to have their goods excluded from the tariffs of 10-25%.

Earlier this week, the USTR replied indicating an exclusion process will not start on List 3 unless negotiations fail with China and the tariffs are raised on the $200 billion worth of goods from 10 to 25%. Both China and the US have agreed to a “truce” until March 2, 2019.

Will update as soon as any updates are available. If you have any trade, import, export, trade or compliance attorneys, contact experienced trade attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com

Midlevel US-China trade talks end – higher-level talks next?

January 10, 2019 By in Uncategorized Tags: , , Leave a comment
sea clouds boat ship

Photo by Skitterphoto on Pexels.com

According to the New York Times, the midlevel US trade negotiators and their Chinese counterparts concluded trade talks today (Wednesday, January 10th).

No new concerns were mentioned in the NYT article. The US is still concerned about China’s purchase of US agricultural, energy and manufacturing products; forced technology transfer; intellectual property protection and concerns regarding China’s 2025 initiative.

The next step is to report the results of their talks to President Trump. As you are aware, the imposition of List 3 tariff increases to 25% (from the current 10%) occurs on March 1st (a 90-day extension announced during the “truce” at the G-20 summit in December 2018).

If you have any questions on how the Section 232 or Section 301 duties on Chinese imports impact your business, contact experienced trade and customs attorney David Hsu at attorney.dave@yahoo.com or by phone/cell/text: 832-896-6288.