Update on trade news from around the world
Chris Green, head of Commerce’s Office of Economic Development and Competitiveness, attended the China International Import Summit in Shanghai earlier this month. We continue to address intellectual property and other challenges while also working to maintain and grow international relationships that are so vital to our state’s economy, even as more uncertainty emerges from the Trump administration. Here’s an update on recent trade news stories from around the world:
The Justice Department recently unsealed charges against 10 Chinese spies and hackers who were accused of stealing commercial secrets of U.S. and European companies. This is part of a broader crackdown on Chinese intellectual property theft and involves one of the four claims cited by the Administration in imposing Section 301 tariffs on Chinese imports.
According to a survey by the American Chamber of Commerce in Southern China, over 70 percent of firms operating in that area are considering delaying additional investment in China or moving some or all of their manufacturing to other countries as a result of the trade war. Only 1 percent, however, reported that they had any plans to establish manufacturing bases in North America.
By December, the Trump Administration is planning to announce more tariffs on remaining Chinese imports that currently do not face tariffs if the meeting between President Xi Jinping and President Trump does not ease trade tensions. The tariffs would likely go into effect in February 2019.
Growth of U.S. company earnings is slowing after a rapid start earlier in the year.
Imports of steel into the European Union have risen sharply as a result of trade diversion from U.S. tariffs. Steel exports from Turkey and Russia to the EU rose the fastest in the first nine months of 2018, by 57 percent and 56 percent respectively.
Chinese tourism and travel is another tool that can be used in the trade war with the United States.
President Trump’s decision to withdraw the United States from the Trans Pacific Partnership (TPP) has undermined labor rights and democracy in Vietnam.