Background on the Situation
In an effort to ease trade tensions, China has decided to temporarily lift certain non-tariff measures imposed on 17 US entities listed as unreliable and 28 US entities included in China’s export control list. This move comes after the recent agreement between China and the United States to reduce trade friction.
Details of the Announcement
According to China’s Ministry of Commerce, the following actions have been taken:
- Suspension of Measures Against Unreliable Entities: China will suspend the non-tariff measures implemented on April 4 against 11 US entities listed as unreliable for a period of 90 days.
- Suspension of Measures Against Export Control Entities: China will also temporarily lift restrictions on 28 US entities included in its export control list, which were added in two waves – 16 on April 4 and 12 five days later. These restrictions will be suspended for 90 days.
As part of this announcement, exporters will need to submit a request to the Ministry of Commerce if they wish to ship dual-use products to these 28 entities.
Impact and Context
The entities listed as unreliable by China face restrictions on import, export, and investment activities within the Chinese market. This recent development indicates a step towards easing tensions following the trade agreement between China and the United States.
The 28 US entities previously restricted under China’s export control list will now have the opportunity to engage in transactions involving dual-use products, which can have both civilian and military applications. This move may facilitate collaboration between Chinese and American companies in various sectors, including technology and defense.
Key Questions and Answers
- What are non-tariff measures? Non-tariff measures are policies or regulations, other than traditional tariffs, that can impact international trade. These may include technical barriers to trade, sanitary and phytosanitary measures, customs procedures, and more.
- Which entities were affected? The non-tariff measures were imposed on 17 US entities deemed unreliable by China and 28 US entities included in China’s export control list.
- What is the duration of the suspension? China has suspended these non-tariff measures for 90 days, starting from the morning of this Wednesday.
- What are dual-use products? Dual-use products have both civilian and military applications. An example would be certain advanced computing technologies that can be used for both commercial and defense purposes.
