Beijing, China (April 25, 2024) – China has passed a new law granting the government the power to impose tariffs on imports from countries targeting Chinese exporters, according to Reuters. The move is seen as a response to tariff measures imposed by the United States and the European Union (EU) on Chinese goods.
The Tariff Law, effective December 1, 2024, outlines a series of new tariff measures China can utilize on imported goods. The law also empowers the Chinese government to investigate unfair trade practices and implement punitive measures against countries violating trade agreements.
The passage of this new law comes amidst escalating tensions between China and its major trading partners. The US and EU have imposed tariffs on various Chinese imports, accusing China of engaging in unfair trade practices and subsidizing its exporters.
China has denied these allegations and stated they will retaliate with their own tariff measures. The new Tariff Law is viewed as part of China’s strategy to protect its exporters and safeguard its national interests.
Analysis:
- The new Tariff Law grants the Chinese government greater authority in imposing tariffs on imports.
- This law can be used to counter tariff measures imposed by the US and EU on Chinese goods.
- Passage of this law could exacerbate trade tensions between China and its major trading partners.
Quotes:
- Professor Henry Gao, Singapore Management University: “It’s like a nuclear weapon: the purpose of having it isn’t to use it, but to deter others from using a similar weapon against you.”
- Reuters Report: “The law will take effect on December 1 and outlines a range of legal provisions related to tariffs on Chinese imports and exports, from definitions of tariff preferences to China’s right to retaliate against nations violating trade agreements.”
Significance:
The new Tariff Law is a significant development in trade relations between China and its major trading partners. This law could significantly impact global trade flows and potentially escalate tensions between China and other nations.