Spokesperson of the Ministry of Commerce Answers Reporter’s Questions on Recent Chinese Economic and Trade Policies and Measures
1. A reporter asked: On October 9, the Ministry of Commerce and the General Administration of Customs issued an announcement to implement export controls on certain rare earth items. What are China’s considerations?
Answer: China has issued export control measures on rare earth and other related items, which is a legitimate practice by the Chinese government to improve its export control system according to laws and regulations. The world situation is currently turbulent, with military conflicts occurring from time to time. China has noted that certain heavy rare earth items have important applications in the military field. As a responsible major country, China implements export controls on relevant items according to law, aiming to better safeguard world peace and regional stability, and to fulfill international obligations such as non-proliferation.
China’s export control does not mean a ban on exports. Applications that meet the requirements will be licensed. Before announcing the measures, China had already notified relevant countries and regions through bilateral export control dialogue mechanisms. China is willing to strengthen dialogue and exchange with other countries on export controls to better safeguard the security and stability of global industrial and supply chains.
2. A reporter asked: We noticed that recently the Ministry of Commerce announced strengthened export controls on rare earth and related items. How will the implementation proceed?
Answer: As a responsible major country, China has always firmly upheld its own national security and international common security, always adhered to the principle of fairness and reasonableness, and implements export control measures cautiously and appropriately. China has already fully assessed the potential impact of these measures on production and supply chains and is confident that the impact will be very limited. Prior to the introduction of the measures, China notified relevant countries and regions through bilateral export control dialogue mechanisms.
Going forward, the Chinese government will conduct licensing reviews in accordance with laws and regulations, and will approve applications that meet the requirements. At the same time, the government will actively consider applying general licenses, license exemptions, and other facilitation measures to effectively promote compliant trade. I want to stress that China’s export controls are not a ban on exports; as long as the export applications are for civilian use and compliant, they can be approved. Relevant enterprises need not worry. The Chinese government will continue to work with other countries to firmly safeguard world peace and regional stability, and jointly guarantee the stability of global industrial and supply chains.
3. A reporter asked: On October 10, US Eastern Time, the US announced that in response to China's export controls on rare earth and related items, it will impose a 100% tariff on China and implement export controls on all key software. What is the Ministry of Commerce’s comment?
Answer: China has noted the relevant situation. On October 9, China issued export control measures on rare earth and related items, which is a normal action taken by the Chinese government according to laws and regulations to improve its export control system. As a responsible major country, China has always firmly upheld its own national security and international common security, adhered to the principles of fairness, reasonableness, and non-discrimination, and has implemented export control measures cautiously and appropriately. The US statement is a typical example of “double standards.” For a long time, the US has generalized national security, abused export controls, adopted discriminatory approaches towards China, and imposed unilateral measures of long-arm jurisdiction on numerous products such as semiconductor equipment and chips. The US export control list contains more than 3,000 items, while China’s export control list contains only about 900 items. The US has long used the “De minimis” rule in export controls—sometimes as low as 0%. US actions severely undermine the legitimate rights and interests of businesses, seriously impact the international economic and trade order, and gravely damage the security and stability of global industrial and supply chains.
Especially since the Sino-US Madrid economic and trade talks in September, within just over 20 days, the US has continued to introduce a series of new restrictive measures against China, listing multiple Chinese entities on the export control entity list and the specially designated nationals list; arbitrarily expanding the scope of controlled enterprises through “penetrative” rules, affecting thousands of Chinese enterprises; ignoring China’s concerns and goodwill, and insisting on implementing 301 measures targeting China’s maritime, logistics, and shipbuilding industries. US actions severely harm China’s interests and seriously damage the atmosphere of bilateral trade talks, which China firmly opposes.
The practice of threatening with high tariffs is not the correct way to deal with China. China’s position on tariff wars is consistent: we do not want them, but we are not afraid of them. China urges the US to promptly correct its wrong practices, follow the important consensus reached during the leaders’ call, safeguard hard-won negotiation outcomes, continue to utilize the Sino-US economic and trade consultation mechanism, solve concerns through dialogue on the basis of mutual respect and equal consultation, properly manage differences, and maintain stable, healthy, and sustainable development of Sino-US economic and trade relations. If the US persists, China will also resolutely take appropriate measures to safeguard its legitimate rights and interests.
4. A reporter asked: The US will impose port fees on relevant Chinese ships on October 14. We noticed that China has announced corresponding countermeasures. What is China’s comment?
Answer: On April 17, the Office of the US Trade Representative announced the final 301 investigation measures against China's maritime, logistics, and shipbuilding sectors, and will impose port fees on relevant Chinese vessels starting October 14. US actions seriously violate WTO rules and the principle of equality and reciprocity in the China-US Maritime Agreement, which is typical unilateralism. China has expressed strong dissatisfaction and firm opposition many times.
Since the Sino-US London economic and trade talks, China has been negotiating and communicating with the US on these measures, provided a written response to the unfounded accusations in the 301 investigation report, and proposed suggestions for cooperation in relevant sectors. However, the US has shown a negative attitude, insisted on implementing these measures, and on October 3 issued a notice specifying the requirements for fees on Chinese vessels. To protect its legitimate rights and interests, China had to take countermeasures and, in accordance with the Regulations of the People's Republic of China on International Maritime Transport and other laws and regulations, decided to levy special port fees on vessels involving the US. China’s countermeasure is a necessary act of passive defense, aimed at protecting the legitimate rights and interests of Chinese industries and enterprises, as well as maintaining the fair competition environment in the international shipping and shipbuilding market. We hope the US will face up to its mistakes, work with China towards each other, and return to the right track of dialogue and consultation.
Source: Ministry of Commerce
Risk Reminder and DisclaimerThe market has risks and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial status, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their specific circumstances. Investing based on this article is at your own risk.