Chinese exclusion process is aimed at limiting domestic damage caused by higher tariffs on US imports
- China’s process is modelled on one used by US, but only incorporated companies can apply for relief and there will be no public hearings
China has, for the first time, used a process that would exclude some US imports from higher tariffs to spare consumers and producers at home the worst of the punitive measures while leaving room for negotiations between the two countries.
The process, six months in the making, was modelled on one used by the US before tariffs were imposed, with one major difference – there are no public hearings involved in the Chinese process.
A three-page preliminary regulation document was released on Monday together with a long list of American products that would be subject to higher tariffs, part of China’s response to the US tariff increase on Friday.
Companies in China that would be affected can apply for an exclusion from the higher tariffs on American imports, with industry associations and chambers of commerce encouraged to file on behalf of their members, the document from the Customs Tariff Commission of the State Council said.
Applicants must explain the difficulties they would suffer in substituting products for American goods, the economic damage the tariffs could cause their businesses and the damage to their industrial development and employment, supported by facts and figures.