China Changes Export Tax Policies on Raw Materials Subject of WTO Case

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Two days ago we reported the Obama Administration and the Office of the United States Trade Representative filed a case with the WTO over Chinese export restraints on key raw materials.  You can read that post here.  But what we’ve just learned is that China had modified the export tax rates on June 22, effective July 1. Somehow, these changes failed to make the mainstream or even trade publication news though Metal-Pages did allude to tax changes that may go into effect July 1.

The export taxes for a range of metal products appear as follows:

  • Molybdenum had a 10 or 15% export duty and now has a 5% export duty
  • Tungsten went from 10% to 5%
  • Indium went from 10% to 5%
  • Indium powder, 10% to 5%, and indium scrap, and indium metal, 15% to 5%
  • Aluminum bars are still subject to 15% export duty for big bars and 5% for small bars

The US case was filed on June 23 according to the United States Trade Representative. We will surmise that the Office of the United States Trade Representative had reviewed the changes and had not been satisfied (and hence filed the WTO case) or had not seen the proposed July 1 tax changes (though we suspect that is unlikely). In either case, our people in China are telling us that Chinese government officials will make a new policy to make Obama happy.

We’ll follow-up with a Chinese perspective on this WTO case and the myriad of anti-dumping cases filed here in the US.

In the meantime, if anyone would like to see the new export tax list, drop me a line at lreisman(at)aptium global(dot)com

–Lisa Reisman

Comment (1)

  1. Ben Gee says:

    China is also taxes manufactured goods, how come the US or EU do not complain about that. Taxing exports account for a large share of China’s government income. Will the reduction of tax of raw materials make the West competitive? We will wait and see.

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