China has decided to suspend the 24% additional customs duty it imposes on US goods for another two months. The decision by the Beijing administration is being evaluated as the formalization of the agreement between the leaders of the two countries to extend the trade ceasefire until January.
According to a statement made by the Customs Tariff Commission of the State Council of China, the regulation will come into effect on Tuesday at 13:01 Beijing time. The 10% general customs duty applied to US imports will continue.
The Ministry of Transport also announced in a separate statement that the suspension period for special fees applied to American ships docking at Chinese ports has been extended until January 10. Thus, the ceasefire schedule, which was previously expected to end on November 10, has been extended.
CAUTIOUS OPTIMISM IN TRADE TENSION
The tariffs and fees in question were introduced during the period of mutual trade tension that began following US President Donald Trump's return to the White House. The parties had agreed to suspend the mutual 24% additional fees while maintaining the 10% rate.
The Beijing administration also stated that it would closely monitor Washington's plans to introduce new taxes under Section 301 of the Trade Act of 1974. China signaled that it could adjust its retaliatory measures depending on the steps taken by the US.
Trump and Chinese President Xi Jinping are expected to meet again later this month as part of the Asia-Pacific Economic Cooperation (APEC) meeting to be held in Shenzhen. The implementation of the trade ceasefire and the issues of tension between the two countries are expected to come to the fore in the meeting between the two leaders.
Although the search for stability has come to the fore in US-China relations recently, the trust issue between the parties has not been completely eliminated. It was reported that US officials conveyed their concerns regarding Beijing's recent steps and the implementation of the reached agreements to the Chinese side.
News Source: 12punto
