Chinanews.com September 20th At the regular press conference of the Ministry of Commerce held on September 20th, the spokesperson of the press said that the US insisted on increasing tariffs, which brought new uncertainty to the negotiations between China and the United States. The Chinese government is studying targeted measures and promulgating implementation in a timely manner to help Chinese and foreign-invested enterprises in China actively respond to the difficulties and challenges they may face.

Sino-US consultations increase uncertainty

Q: The Ministry of Commerce recently revealed that the Sino-US economic and trade team has maintained communication and the US has also issued an invitation for consultation. At this time, the US still decided to impose tariffs on China's 200 billion US dollars of goods. May I ask, will the next Sino-US team consultation and contacts continue?

A: On September 18th, we have already spoken on the US side's tariff increase of 200 billion US dollars for China's exports to the United States. It pointed out that the US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides. It is hoped that the US will show sincerity and goodwill, adopt convincing means to correct it in a timely manner, and properly resolve the Sino-US economic and trade issues.

China is studying targeted measures

Q: In the previous US$50 billion taxation measures, China once estimated that nearly 60% of foreign-invested enterprises in China will be affected. Will this tax of 200 billion U.S. dollars be taxed, does China have a rough estimate? Which companies will be affected? What level of impact will it be affected?

A: We are currently evaluating the impact of the US tax increase on 200 billion US dollars of Chinese exports to the United States.

At first glance, it involves six major categories of commodities such as electromechanical, light industry, textile and garment, resource and chemical industry, agricultural products and pharmaceuticals. Among the affected enterprises, foreign-funded enterprises may account for nearly 50%. It can be seen that the US unilateral trade protectionist measures hurt not only the interests of enterprises and consumers in China and the United States, but also the safety of the global industrial chain and supply chain.

At present, the Chinese government is studying targeted measures and promulgating implementation in a timely manner to help Chinese and foreign-invested enterprises in China actively respond to the difficulties and challenges they may face.

China will implement tariff measures simultaneously with the US

Q: We have noticed that this time China’s counter-measures against the US$200 billion have changed from four to two in comparison with the tax rate in August, and the tax rate has decreased. What is the consideration of the Ministry of Commerce? ?

A: Actually, on September 18th, the announcement issued by the Customs Tariff Commission of the State Council has already answered your question.

On July 11, the US announced that it would impose a 10% tariff on 200 billion US dollars of Chinese exports to the United States, and on August 2, raise the tax rate to 25%. On August 3, China announced that it was forced to take countermeasures to impose tariffs of 25%, 20%, 10% and 5% on US$60 billion from US imports, and implemented it in parallel with the US. On September 18, the US announced that it will implement the above tariff measures on September 24, and reduce the tax rate back to 10%. On the same day, China announced that it will implement the above tariff measures in parallel with the US and impose 10% and 5% tariffs.

The domestic market consumption potential is constantly being released

Q: The first question, US President Trump said that China is focusing on the interests of American farmers, ranchers and industrial workers. They think that these people have shown loyalty to him. What is China's response to this allegation? The second question is that the Chinese media recently stated that China will not only defend itself in the trade war. If you want to ask a spokesman, does this mean that China will take positive action against the United States? Can you tell us what new measures China will take on the United States in terms of trade, in addition to these tariffs announced abroad. The trade friction between China and the United States has been going on for several months and has become a protracted war. What measures will the Ministry of Commerce take to support exporters affected by US trade frictions and help them quickly enter new export markets? Will exporters affected by trade wars be advised to shift their focus to the domestic market?

A: Regarding the first question, what I want to say is that the counter-measures adopted by the Chinese side are all forced. They are solely for the purpose of safeguarding China’s own legitimate rights and interests, and more to safeguard the global free trade order. Politics doesn't matter.

The second question, I have not seen relevant reports yet, so I can't comment on this.

The third question, in the field of trade, we will take a series of measures to actively help companies cope with the difficulties and challenges they may face. The measures currently being taken include trade facilitation related initiatives, such as shortening customs clearance time, reducing customs clearance fees, cleaning up regulations and corporate fees, and so on. These measures are fully in line with WTO rules.

Regarding the issue that some of the exporters mentioned have turned their focus to the domestic market, China has a huge domestic market and the consumption potential is constantly being released. Some foreign trade enterprises, including foreign-funded enterprises, are already exploring the domestic market in China. The independent choice is also the role of the market.

China will not stimulate exports by depreciating the renminbi

Q: In response to the recent announcement by the United States to impose tariffs on Chinese goods worth US$200 billion on September 24, there are now foreign media reports that China may respond by currency depreciation. How does the Ministry of Commerce respond?

A: At the Davos Summer Forum that opened yesterday morning, Premier Li Keqiang made it clear that China will not stimulate exports through depreciation. The continued depreciation of the renminbi will do more harm than good to China's economy.

The Chinese side has repeatedly stressed that China has always adhered to the market-oriented exchange rate reform direction, adhered to the spirit of the G20 communique, did not engage in competitive devaluation, and did not use the RMB exchange rate as a tool to deal with external disturbances such as trade friction.

In the future, China will continue to deepen the reform of exchange rate marketization, enhance the flexibility of the RMB exchange rate, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

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