"We want to make in China, don't add taxes" - Sidelights on US Customs Tariffs

“Do you need products that can be produced in other countries?”

“No, only China has a complete production chain.”

“Can you reduce your dependence on “Made in China”?”

“No, China has our key suppliers.”

“Is there any other substitute for this Chinese product you imported?”

“No, consumers like this Chinese goods.”

......

Such a dialogue reappeared in the conference room of the US International Trade Commission building in Washington. Although it was the summer vacation in August, the US government held a hearing on the proposed tariff of 200 billion US dollars for Chinese exports to the United States, but more than 300 industry and company representatives came from all over the country. The reporters were on the scene, and most of them spoke in their speeches not to impose tariffs because the US consumers and businesses would be seriously affected.

The hearing was extended from 3 days to 6 days because the number of people to speak exceeded expectations.

"Tariff bullets" shot at themselves

"If you have a baby, unfortunately, the crib and the safety seat will be taxed. Almost all the stationery in the children's bag will be taxed, pushpins, glue, stickers... without exception."

The Asian American Guo Hong, who is speaking, is the vice chairman of the American Retail Industry Leadership Association. Members of the association include Best Buy, Target, Wal-Mart and many other US retail giants. She said that once the new tax-increasing measures are implemented, the daily consumer goods imported from China will increase in price. The expenditures of many ordinary households in the United States will increase, and the lives of some low-income families will be in a dilemma.

A similar appeal was made by Bob Margaux. He represents the American Association of Bicycle Products Suppliers. "Don't let the children ride the joy of cycling as a victim of trade disputes!" The white-haired industry stressed that the imposition of tariffs on bicycle products from China would be a catastrophic blow to the US market. “There are tens of thousands of jobs behind the business of thousands of bicycle shops.”

According to industry data, 90% of the 18 million bicycles sold in the United States each year are from China. At the same time, the United States also imports more than 300 million US dollars worth of spare parts from China every year. Since it is impossible to find an alternative source like China, the US government's "tariff bullets" will actually hit their own people.

Food, furniture, home appliances, computers, bicycles, clothing, luggage... The list of tariffs to be levied on food and shelter is all available, so there are many Americans who want to "spit" the government. Some media even used such words when reporting - "US companies warned that the next round of tariffs imposed on China will cause Americans to suffer heavy losses, from the cradle to the grave, no one is spared."

This time the participants came more than the previous hearings. As the U.S. government’s actions to impose tariffs on China have escalated, more and more companies and people have been overshadowed by clouds, and even Alaska’s American fishermen have not been spared.

Senator Dan Sullivan came for the fishermen. Every time he mentions the words "we", "the United States" and "Alaska", he will obviously slow down to express his emphasis. He said that most of the more than 900 million US dollars of seafood on the list were fished by Alaska fishermen. After deep processing in China, they were imported by American companies and sold to local and other markets around the world. Once the government "hands on" these fish and shrimp, it is the American fishermen who are hurt.

US companies rely on "Made in China"

When the representative of canned oranges, Paul Coles, spoke up, he raised his own cans. He asked the government to remove the product on the tax increase list. “These canned oranges from China have made the American family's food choices richer, and we don't have the raw materials for the food – Wenzhou Tangerine. In addition, processing cans requires a lot of equipment and manpower. There is no manufacturer in the United States who is willing to do it. ""

When a government official asked if he could replace Chinese mandarin oranges with peaches, pears, etc., Coles directly replied: "Canned oranges are the favorite of American children!"

At the hearing, officials from various US government departments asked why they did not adjust the industrial chain and look for alternatives to China. Entrepreneurs and industry representatives put facts and reason, indicating that those alternatives are not practical and will harm the interests of the United States.

Mark Carnes, vice president of Cedar Electronics, which produces driving recorders, said it is difficult for the company to shift its supply chain out of China because it is difficult to find new options for workers and technical capabilities, not to mention returning to the United States. "If you add tariffs, you will benefit only from our competitors in Korea and Japan."

Similar to Carnes's ideas, there are representatives from various industries such as electromechanical, mechanical, semiconductor, and luggage. What they heard from them are: China has sufficient production capacity, China's manufacturing industry is rich, China's supporting facilities are mature, Chinese manufacturers and we are old friends... The speaker also warned that if tariffs are imposed, American products will increase in price. Business operations will face difficulties and job opportunities will decrease.

Edward Bouteva, director of international trade at the American Chemistry Council, said: "It is not so easy for companies to change the supply chain. We reaffirm in the strongest sense that the government is responsible for doing things!" on behalf of US information technology companies Naomi Wilson also complained that if companies are busy with rebuilding their supply chains, who still has the energy to innovate.

Industry sources point out that with the development of economic globalization, the manufacture of many products in the world has relied heavily on global collaboration. Political interference is likely to cause a fatal blow to the company and severely impact the economy.

Huang Yuchuan, a long-time scholar of Sino-US economic and trade relations, believes that due to the abundant manufacturing plants and labor resources, low production costs, coupled with fierce market competition and efficient collaboration, China has become an important node in Asia and even global production networks. It is also based on these reasons that it is highly dependent on “Made in China”. This is an independent choice of the market and business.

Sino-US economic and trade "original Qingyuan"

"Our government is playing political games." During the hearing, American travel bag manufacturer Ross Bishop told reporters. He had contact with factories in Southeast Asia and tried to produce in the United States, but later found that it was "the most cost-effective" in cooperation with Chinese manufacturers.

At the hearings of the past week, hundreds of “Chenqing” companies and industry representatives asked the government to make careful decisions and fully consider the interests of US consumers and businesses. Everyone knows that the hearing is a routine process before the US government imposes tariffs. The purpose is to listen to the public opinion and provide channels for the parties to express their opinions. But at the two rounds of hearings surrounding the $50 billion increase in tariffs on Chinese goods, the overwhelming opposition did not change the US government's taxation decision. Some media ridiculed that "you can't wake up to sleep."

However, the speeches of the delegates at the hearing gave people a clearer understanding of the essence of mutual benefit and win-win cooperation between China and the United States, and some vague questions were clarified.

For example, in terms of intellectual property protection, even US technology companies do not agree with the government to use this name as a “trade bar”. Logitech representative of the famous computer peripheral equipment manufacturer Mark Kanzi said at the hearing that Logitech has its own factory in China, intellectual property rights have never been violated, and there is no case of mandatory transfer of technology. “Compared with other countries, Logitech’s intellectual property rights in China’s wholly-owned companies have been better protected.”

At the hearing, “Made in China” was widely praised by the American industry. “Good product quality” and “Mature manufacturing process” are common words used in the speeches of the delegates. When a US official looked at the materials provided by an American furniture company, he could not help but praise the finished furniture made by the company in China. Many people laughed at the scene.

The recognition of “Made in China” products and supply chain status by US consumers and industry reflects the complementarity and dependence of China and the US economy. According to a report released by the US-China Business Council, “Made in China” helps American consumers save considerable living expenses, help US companies achieve better allocation and more profits, and create millions of jobs for the US economy. .

These are the true portrayal of China-US mutual benefit and win-win economic and trade relations.

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