On the first day of the opening of the two conferences (the National People's Congress and the National People's Political Consultative Conference), the largest political event every year, China immediately launched a counterattack by mobilizing tariff and non-tariff retaliation cards.
The Chinese government announced on the 4th that it will stop importing soybeans from this day, naming three U.S. soybean exporters. China's General Administration of Customs announced, "Mac and seed coatings have been detected in U.S. soybeans," adding, "In order to secure the health and safety of Chinese consumers, three companies, CHS, Louis Dreyfus Company, and EGT, will stop importing soybeans in accordance with the Chinese Food Safety Act and World Trade Organization (WTO)-related regulations." Regarding U.S. wood, he said, "Pest has been detected in quarantine," adding, "In accordance with the relevant provisions, imports of U.S. wood will be suspended from this day." In addition, China's State Council's Customs Enforcement Committee announced on the same day that "an additional 15 percentage points will be imposed on U.S. chicken, wheat, corn, and cotton and 10 percentage points on sorghum, soybean, pork, beef, fisheries, fruits, vegetables, and dairy products from the 10th." This is a "retaliation tariff" measure that came shortly after midnight (U.S. Eastern Time) on the 4th, when additional 10 percentage points of U.S. tariffs on Chinese imports began to be applied. However, it has decided not to apply a tariff increase to products shipped before the 10th of this month and entering China before the 12th of next month. On the same day, China's Ministry of Commerce sanctioned individual U.S. companies. It has decided to immediately stop exporting dual-use materials (both civilian and military supplies) such as core minerals to 15 U.S. startups, including Habok AI, a startup that develops unmanned and autonomous ships, and Shield AI, a drone artificial intelligence (AI) software startup. It also designated 10 defense companies, including Huntington Ingalls Industries, the largest U.S. warship-building company, as "unreliable companies."
The Department of Commerce also said it has filed a complaint with the WTO against additional U.S. tariffs. On the same day, U.S. unilateral tariffs violate WTO rules and undermine global supply chain stability, National People's Congress spokesman Lu Chin-jian said at a press conference. "China will defend the multilateral trade system and oppose unilateralism and protectionism."
[Beijing correspondent Song Kwang-seop]
