China-US Trade Tensions: US removes Chinese containers from tariff list

World
Europe

02:11

Meanwhile, shipping containers made in China are now no longer subject to US tariffs. This comes after the US government removed additional duties on five product lines imported from China. CGTN's He Weiwei investigates.

Talk of tariffs continues to prolong China-US trade friction, but the rhetoric may be softening. Five product lines are now exempt from additional American tariffs, and among them, containers are top-of-mind for many here in China.

HE WEIWEI GUANGZHOU CITY, GUANGDONG PROVINCE "According to the China Container Industry Association, over 95% of containers worldwide are made in China. And about half of them are manufactured here in Guangdong province."

Mao Yanhua, a professor from Sun Yat-sen University explains why China is dominant in container production.

MAO YANHUA, VICE DEAN INSTITUTE FOR FREE TRADE ZONE RESEARCH, SUN YAT-SEN UNIV. "The production base for containers relies heavily on port cities. If you look at the ten busiest ports in the world, they are all in Asia. Seven are Chinese cities, including Shanghai, Shenzhen and Hong Kong. So that means container production can only be in these areas, it can't effectively be moved to America."

According to Denton's Law Firm, whose attorney attended the July 25th tariff hearing, American industry representatives opposed unanimously levying tariffs on containers. Their reasons included fear of increased costs being passed down to consumers; an inability to find alternative suppliers; and they said expensive containers will affect US national security.

MAO YANHUA, VICE DEAN INSTITUTE FOR FREE TRADE ZONE RESEARCH, SUN YAT-SEN UNIV. "Containers also require technology. For example, some require a cold chain system, and a logistics monitoring system. Chinese companies are capable of producing customized containers, which increases our competitiveness in the industry."

Professor Mao believes the US government wants to reduce the trade deficit with China and increase employment. But imposing tariffs on containers doesn't serve either purpose. HWW, CGTN, GZ.