Since the United States launched the 301 investigation on China on August 18, 2017, trade tensions between China and the United States have received unprecedented attention on a global level. On August 1, President Trump announced a 10% additional tariff on Chinese goods worth $300 billion. Both the Chinese Ministry of Foreign Affairs and the Ministry of Commerce stated that the Chinese government will take the necessary countermeasures. Recently, the US side has indicated that it will waive or postpone the tariff on some goods.
For companies engaging in cross-border business, it is extremely urgent and challenging to keep up with the ever-changing developments and to formulate effective response strategies in a timely manner. Ernst & Young LLP (EY) and China General Chamber of Commerce-USA (CGCC) held a dedicated webinar “US-China Trade Actions Update” on August 20th for CGCC members and Chinese companies.
First, XU Chen, Chairman of CGCC and President and CEO of Bank of China USA gave opening remarks. Mr. Xu emphasized that US-China economic and trade relations will have a significant impact on the global economy and called on Chinese companies to continue to pay attention to the latest developments in US-China trade.
Helen Xiao, an international trade expert from EY Americas China Overseas Investment (COIN) network shared the latest developments in US-China trade, including a review of Sections 232 and 301, as well as the latest developments on Section 301 list 4. Based on EY’s observations and experience in the industry, Helen shared common response strategies for companies impacted by trade tensions. Ms. Xiao stressed that Chinese companies affected by trade tensions should formulate a holistic tariff planning strategy as soon as possible, including supply-chain management, transfer pricing, labor assessment, etc. to cope with the ongoing US-China trade tensions.
Since 2011, EY Americas China Overseas Investment Network has been focusing on serving Chinese companies in the Americas. EY will continue to share the latest developments on trade, taxation and other topics closely related to Chinese companies to convey the perseverance and determination of providing the best services to Chinese clients.