China’s US$60 Billion Tariffs On United States Products A Good Opportunity For Russia To Push The US Out Of Asia

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Op/Ed by Chris Devonshire-Ellis

The new range of tariffs introduced by China on the importation of over 5,000 American products into the country can be good news for Russian businesses looking to step into the supply chain gap now created by this new twist in the US-China trade war. China has increased to 20 and 25% import duties on thousands of American products, rendering them expensive to buy in China. This creates a huge opportunity for Russian businesses able to sell them to China instead, as the tariffs imposed by China on these products entering the country from Russia or the Eurasian Economic Union is far lower.

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The complete list of products is here:

  • Black & Yellow soybean
  • Corn
  • Cornflour
  • Uncombed cotton
  • Cotton linters
  • Sorghum
  • Brewing or distilling dregs and waste
  • Other durum wheat
  • Other wheat and mixed wheat
  • Whole and half head fresh and cold beef
  • Fresh and cold beef with bones
  • Fresh and cold boneless beef
  • Frozen beef with bones
  • Frozen boneless beef
  • Frozen boneless meat
  • Other frozen beef chops
  • Dried cranberries
  • Frozen orange juice
  • Non-frozen orange juice
  • Whiskies
  • Unstemmed flue-cured tobacco
  • Other unstemmed tobacco
  • Flue-cured tobacco partially or totally removed
  • Partially or totally deterred tobacco stems
  • Tobacco waste
  • Tobacco cigars
  • Tobacco cigarettes
  • Cigars and cigarettes, tobacco substitutes
  • Hookah tobacco
  • Other tobacco for smoking
  • Reconstituted tobacco
  • Other tobacco and tobacco substitute products
  • SUVs with discharge capacity of 2.5L to 3L
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2500ml, but not exceeding 3000ml for SUVs (4 wheel drive)
  • Vehicles with discharge capacity of 1.5L to 2L
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 1000ml, but not exceeding 1500ml for SUVs (4 wheel drive)
  • Passenger cars with discharge capacity 1.5L to 2L, 9 seats or less
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 1000ml, but not exceeding 1500ml for 9 passenger cars and below
  • Passenger cars with discharge capacity of 3L to 4L, 9 seats or less
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 3000ml, but not exceeding 4000ml for 9 passenger cars and below
  • Off-road vehicles with discharge capacity of 2L to 2.5L
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2000ml, but not exceeding 2500ml for off-road vehicles
  • Passenger cars with discharge capacity of 2L to 2.5L, 9 seats or less
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2000ml, but not exceeding 2500ml for 9 passenger cars and below
  • Off-road vehicles with discharge capacity of 3L to 4L
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 3000ml, but not exceeding 4000ml for off-road vehicles
  • Diesel-powered off-road vehicles with discharge capacity of 2.5L to 3L
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2500ml, but not exceeding 3000ml for diesel-powered off-road vehicles
  • Passenger cars with discharge capacity of 2.5L to 3L, 9 seats or less
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement exceeding 2500ml, but not exceeding 3000ml for 9 passenger cars and below
  • Off-road vehicles with discharge capacity of less than 4L
  • Other vehicles equipped with an ignited reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source. Cylinder capacity displacement not exceeding 4000ml for off-road vehicles
  • Other vehicles which are equipped with an ignited reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source
  • Other vehicles that are equipped with a compression ignition type internal combustion engine (diesel or semi-diesel) and a drive motor, other than vehicles that can be charged by plugging in an external power source
  • Other vehicles which are equipped with an ignition reciprocating piston internal combustion engine and a drive motor and can be charged by plugging in an external power source
  • Other vehicles that are equipped with a compression-ignition reciprocating piston internal combustion engine and a drive motor that can be charged by plugging in an external power source
  • Other vehicles that only drive the motor
  • Other vehicles
  • Other gasoline trucks of less than 5 tons
  • Transmissions and parts for motor vehicles not classified
  • Liquefied Propane
  • Primary Shaped Polycarbonate
  • Supported catalysts with noble metals and their compounds as actives
  • Diagnostic or experimental reagents attached to backings, except for goods of tariff lines 32.02, 32.06
  • Chemical products and preparations for the chemical industry and related industries, not elsewhere specified
  • Products containing PFOS and its salts, perfluorooctanyl sulfonamide or perfluorooctane sulfonyl chloride in note 3 of this chapter
  • Items listed in note 3 of this chapter containing four, five, six, seven or octabromodiphenyl ethers
  • Contains 1,2,3,4,5,6-HCH (6,6,6) (ISO), including lindane (ISO, INN)
  • Primarily made of dimethyl (5-ethyl-2-methyl-2oxo-1,3,2-dioxaphosphorin-5-yl)methylphosphonate and double [(5-b Mixtures and products of 2-methyl-2-oxo-1,3,2-dioxaphosphorin-5-yl)methyl] methylphosphonate (FRC-1)
  • 38248600a articles listed in note 3 to this chapter containing PeCB (ISO) or Hexachlorobenzene (ISO)
  • Containing aldrin (ISO), toxaphene (ISO), chlordane (ISO), chlordecone (ISO), DDT (ISO) [Diptrix (INN), 1,1,1-trichloro-2 ,2-Bis(4-chlorophenyl)ethane], Dieldrin (ISO, INN), Endosulfan (ISO), Endrin (ISO), Heptachlor (ISO) or Mirex (ISO). The goods listed in note 3 of this chapter
  • Other carrier catalysts
  • Other polyesters
  • Reaction initiators, accelerators not elsewhere specified
  • Polyethylene with a primary shape specific gravity of less than 0.94
  • Acrylonitrile
  • Lubricants (without petroleum or oil extracted from bituminous minerals)
  • Diagnostic or experimental formulation reagents, whether or not attached to backings, other than those of heading 32.02, 32.06
  • Lubricant additives for oils not containing petroleum or extracted from bituminous minerals
  • Primary Shaped Epoxy Resin
  • Polyethylene Terephthalate Plate Film Foil Strips
  • Other self-adhesive plastic plates, sheets, films and other materials
  • Other plastic non-foam plastic sheets
  • Other plastic products
  • Other primary vinyl polymers
  • Other ethylene-α-olefin copolymers, specific gravity less than 0.94
  • Other primary shapes of acrylic polymers
  • Other primary shapes of pure polyvinyl chloride
  • Polysiloxane in primary shape
  • Other primary polysulphides, polysulfones and other tariff numbers as set forth in note 3 to chapter 39 are not listed.
  • Plastic plates, sheets, films, foils and strips, not elsewhere specified
  • 1,2-Dichloroethane (ISO)
  • Halogenated butyl rubber sheets, strips
  • Other heterocyclic compounds
  • Adhesives based on other rubber or plastics
  • Polyamide-6,6 slices
  • Other primary-shaped polyethers
  • Primary Shaped, Unplasticized Cellulose Acetate
  • Aromatic polyamides and their copolymers
  • Semi-aromatic polyamides and their copolymers
  • Other polyamides of primary shape
  • Other vinyl polymer plates, sheets, strips
  • Non-ionic organic surfactants
  • Lubricants (containing oil or oil extracted from bituminous minerals and less than 70% by weight)
  • Aircraft and other aircraft with an empty weight of more than 15,000kg but not exceeding 45,000kg


It is important to understand what the applicable rate is for these products when imported into China from either Russia or the Eurasian Economic Union. China does have double tax and other dutiable agreements with these nations that cover these products, and we have also set up a Tariffs Hotline for Russian businesses to establish what rates apply. We can also provide assistance in trading with China. Please refer to our Russian desk in Shanghai, headed up by Maria Kotova.

 

About Us

Russia Briefing is produced by Dezan Shira & Associates. The firm advises international businesses on investing, setting up businesses and administering them throughout the Eurasian region, including Russia, China, India & ASEAN, and maintains offices and partners in each of these countries and regions. For assistance with investing in Russia, or for Russian businesses wishing to invest in Asia, please contact Maria Kotova at maria.kotova@dezshira.com or visit us at www.dezshira.com.

related-readings_rb-icons_2017 Related Reading:

related-readings_rb-cb-icons_2017Sourcing Products from the US? Here’s What to Do about the New China Import Tariffs

related-readings_rb-cb-icons_2017The US-China Trade War: A Timeline

related-readings_rb-rb-icons_2017Beijing Says US Sanctions Good for Russian Business Opportunities in China

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