Collapse! China-US negotiations usher in the worst ending

Yesterday, we just refuted and analyzed the news that the United States has suspended customs clearance, which has been widely circulated among sellers recently (click here for details)

At the end of the article, I said that although the suspension of customs clearance has been confirmed to be a rumor, the tariff issue still exists. If the results of today's Sino-US negotiations are not ideal, the trade war may break out again at any time.

Although we and many American consumers did not want to see this outcome, things did not go as we wished and the negotiations between the two sides ultimately ended in an unpleasant manner.

After only a few hours of negotiations, the Chinese delegation left the USTR office, indicating that the two sides still failed to reach a consensus on the trade agreement.

Soon after, the US government announced

Starting at 12:01 noon local time on May 10, the tax increase items in the memorandum were officially implemented, and the tax rate for the categories involved increased from 10% to 25%.

Following the US government, China's Ministry of Commerce also issued an announcement on its official website.

Although we have not explicitly stated that we will impose punitive tariffs on those US imports, our country has made its position clear: if you want to impose punitive tariffs, then impose them.

What are the factors that make China and the United States so determined not to make concessions and even to fight again?

What factors have made both China and the United States hold on to their promises? Let's take a look at the US settlement conditions that China firmly opposes.

Stop Stealing US Patents

Stop forced technology transfer

Strengthening domestic intellectual property protection

Opening up markets including finance, communications and other fields

To put it bluntly, the United States wants us to be processing factories for life and completely cut off China from high-tech industries.

The United States itself successfully stole Britain's patented technology - textile technology - in the 18th century, and used it to break Britain's monopoly on global manufacturing, overtaking others and quickly completing its own industrialization process.

Therefore, the United States is well aware of the consequences of allowing China to go down this path, which is why it has launched a trade war that is willing to hurt itself in order to curb China's development.

But China cannot bully the United States as it pleases. Its tough counterattack will make the United States suffer.

Although for us cross-border sellers, most of us may not be included in the 200 billion list that is subject to tax increases this time.

However, Trump's statement on Twitter also indicated that tariffs will continue to be imposed on other imports from China in the future, covering almost all goods.

*The total value of goods imported by the United States from China in 2018 was approximately US$539.5 billion, and the total scope of tariffs announced by Trump was US$530 billion

This means that most shipments shipped by sea are likely to be affected by this trade war.

In addition, the increase in customs work will also increase the number of customs clearance and inspection events, causing shipments to spend more time passing through customs.

Many sellers have told me that the customs clearance speed has dropped significantly recently. This situation will be more serious after the tariff is implemented.

But there is still a chance

A few hours after the resumption of the trade war, China and the United States still have an agenda for consultations in Washington. I sincerely hope that positive results can be achieved in this consultation.

I will also follow up on this incident, and everyone can continue to pay attention to our official account.

If you need to check whether your product is subject to tax, you can scan the QR code below to get a tax list from me.

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

Source: Cross-border Business School

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