Tagged: Exports

Year on year growth of exports in the first quarter

South Korea’s exports reached 146.5 billion US dollars in the first quarter of this year, up 12.5% year-on-year, a record high in the same quarter over the years, according to statistics released by the South Korea Customs Department on the 15th.

Year on year growth of exports in the first quarter

Specifically, the exports of Semiconductors (13.4%), passenger cars (32.4%), ships (29.8%), wireless communication equipment (30.1%), precision instruments (20.9%) and drugs (70%) all increased significantly. The exports of these products have approached or exceeded the first quarter of 2019 before the outbreak. However, the export of petrochemical products fell by 17.1% year-on-year, with a sharp drop of 26.8% compared with that in 2019.

 

According to the analysis of South Korea’s customs department, the main reason for the five month increase in exports from November last year to March this year is that the epidemic has changed people’s lifestyle and consumption habits, resulting in new demand.

Xiaomi is suing the US government

The US Department of Defense announced on February 14 that it had added nine Chinese companies to its sanctions list with links to the Chinese military, including aircraft maker Comac of China and mobile phone maker Xiaomi.

China’s smartphone shipments in 2020 will drop 11 percent year-on-year to 330 million units, according to a global smartphone market research report for the fourth quarter of 2020 released by global technology market analysis and market consulting firm Canalys1 on Thursday.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, with a year-on-year growth of 3% and a market share of 12%, ranking the fourth place and becoming the only company with a positive growth in shipments in the Chinese market with Apple.

Companies, sanctions, the economy, exports

Chinese smartphone maker Xiaomi has filed a legal complaint against the US Department of Defense and Treasury on January 29, according to publicly available court records, huanqiu.com reported on Monday citing foreign media sources.

Xiaomi has asked a US court to declare the US government’s decision to place it on an investment “blacklist” illegal, naming defence secretary Lloyds Austin and Treasury secretary JanetYellen as defendants, foreign media reported.

‘If the restrictions go into effect, Xiaomi faces imminent, serious and irreparable harm,’ the company said in a filing with the U.S. District Court in Columbia.

On January 14, the U.S. defense department announced that it will 9 companies listed in the so-called “of the communist party of China got the enterprise” list, the nine companies including comac, millet group, the micro semiconductor (AMEC), laundry list (LKCO), Beijing zhongguancun development investment center, high clouds semiconductor (GowinSemiconductor), grand China aviation (GrandChinaAir), in the target language (GTCOM) and cnac (CNAH).

If the ban goes into effect, US investors will not be able to invest in or buy shares in the companies and will have until November 11 to sell their shares in the blacklisted companies.

In addition, the potential risks of being included in the list include further investigation or subsequent restrictions imposed by the United States, enhanced export control and economic sanctions, and possible obstruction of other US-related businesses.

Mobile phone shipments growth against the trend

The US crackdown on Xiaomi and other companies has also attracted the attention of the Chinese government. Chinese Foreign Ministry spokesman Zhao Lijian responded at the time that the Trump administration has “distorted the concept of national security, abused state power and repeatedly cracked down on Chinese companies for no reason, which China firmly opposes.”

Companies, sanctions, the economy, exports

Inverse historical trend, “the us relevant ACTS contrary to the principle of consistent brand of market competition and international economic and trade rules, interfere with the normal economic, trade and investment cooperation between China and the United States, against foreign companies in the United States investment confidence, will also hurt U.S. businesses and the interests of investors, this is some people in the United States another example of the dog in the manger.”Zhao Lijian said.

Stock price firm mobile phone shipments growth against the trend

Xiaomi’s Hong Kong share price fell 10 per cent the day after the sanctions were imposed, though the company’s shares quickly rebounded.Xiaomi’s Hong Kong shares closed at HK $29.20 on Jan. 29.

The good results have supported Xiaomi’s share price.According to a research report released by market research firm Canalys, in 2020, the smartphone market shipments in the Chinese mainland fell 11 percent year-on-year to 330 million units.

In terms of branch companies, the top five manufacturers in the Chinese mainland smartphone market in terms of shipment volume in 2020 are: Huawei, OPPO, Vivo, Xiaomi and Apple.Xiaomi and Apple are the only companies with positive shipments growth in two years.

Among them, Huawei (including Honor) shipped more than 123 million units in the Chinese mainland smartphone market in 2020, down 13% year on year, and ranked first with a market share of 37%.Xiaomi shipped 39.8 million units in the Chinese mainland smartphone market in 2020, up 3% year on year, ranking fourth with a market share of 12%.Apple ranked fifth in the Chinese mainland’s smartphone market in 2020, with shipments of 34.4 million units, up 14% year on year and a market share of 10%.

Exports to the United States need to be marked “made in China”

Last year, the trump administration made a small move, issuing an announcement that goods made in Hong Kong must be marked as “made in China” when exported to the United States, instead of “made in Hong Kong”.

 

On Monday, the Hong Kong government and the United States confronted each other on the matter at a closed door meeting of the World Trade Organization (WTO), and their request for the establishment of an expert group was opposed. However, the report pointed out that the US side can only prevent this one time.

 

The US side refused the request of the Hong Kong government on the ground that

Exports to the United States need to be marked "made in China"

On January 25, the United States blocked Hong Kong’s request to upgrade a trade dispute left over from the trump era at the WTO. This is also the first WTO trade dispute meeting attended by the United States since Biden took office.

 

Hong Kong’s exports to the United States need to be marked as “made in China”, and the Hong Kong government and the United States confront each other in the WTO

 

Report screenshot

 

A copy of the speech shows that when the US representative delivered a speech at the closed door meeting of the WTO dispute settlement body, he opposed Hong Kong’s request to set up an expert group to adjudicate the origin label dispute.

 

According to a source quoted by Hong Kong’s South China Morning Post, the US delegation said at the meeting that in view of the transition of the us to a new government, it could not support the request of the relevant expert group.

 

In response, Hong Kong said that it had taken into account the political situation in the United States, but still considered it necessary to continue to implement the panel’s request.

 

The Hong Kong delegation also pointed out that the US measures “do not recognize Hong Kong as a separate customs territory and a member of the WTO”. This has caused “unnecessary burden” to Hong Kong enterprises, caused “confusion and worry” to consumers and the market, and damaged “Hong Kong brand”. Moreover, rules of origin should not be used to “achieve political ends.”.

 

“Only this time”

 

On 29 June last year, the trump government announced the abolition of Hong Kong’s special status treatment and the suspension of preferential treatment for Hong Kong, including export license exemption, which is different from that of mainland China.

 

On August 11 of the same year, the U.S. Customs and Border Protection Service announced that “within 45 days from now,” the origin of domestic products exported to the United States “must be marked as” China. “.

 

After the announcement comes into effect, goods manufactured by Hong Kong companies will be subject to the same tariffs as those of mainland exporters. The Secretary for commerce and economic development, Mr Yau Teng Wah, later said that the US side had extended the implementation date of the new regulation by 45 days to November 9 in response to the request of some industries.

 

On November 3 last year, Hong Kong launched a dispute at the WTO over this provision of the US government.

 

It is worth noting that Reuters pointed out on the latest WTO meeting that the US government can only prevent this one time. As a member of the WTO, Hong Kong can make this request again in the WTO next month.

 

The South China Morning Post also further introduced that it is a common situation that the party receiving the complaint initially refuses the request of the WTO to set up an expert group. Such requests can only be passed by consensus, and the defendant actually has the right of veto.

 

However, in the second trial, we need to unanimously oppose the formation of an expert group in order to stop this request. Hong Kong can now request a special meeting of the dispute settlement body or wait for the next meeting of the body. By then, the request is likely to be passed.

 

According to the data of the Hong Kong Trade Development Council, the value of domestic goods exported to the United States in 2019 was US $471 million, accounting for only 0.1% of all the goods sent from Hong Kong.

 

John marrett, chief analyst of the economist think tank in Hong Kong, analyzes the US government’s small moves and believes that “although this is not a good thing from a macro point of view, it is not so meaningful. Because in general, the value is very small. ”

 

Wu Hongbin, President of the Hong Kong manufacturers association, told Hong Kong media in August last year that the relevant measures had little impact because Hong Kong’s manufacturing industry accounted for only a small part of its GDP. Moreover, these products are mainly provided locally, and the export volume is relatively small. The main reason is that Hong Kong factories set up factories in the mainland or overseas, and then export their products to the United States.

 

At that time, the Hong Kong government impolitely criticized the United States for “ignoring Hong Kong’s status as an independent member of the World Trade Organization”. If necessary, it could not rule out taking actions in accordance with the WTO rules to safeguard Hong Kong’s interests.

 

Observer: waiting for the new US trade representative to take office

 

In addition to the origin label dispute, the report points out that the closed door meeting of the WTO dispute settlement body held on the 25th is the first time that the United States has the opportunity to intervene in a long-term and active trade dispute and participate in the deadlocked reform negotiation of the WTO supreme appellate body.

 

Under the leadership of former president trump, Washington blocked the appointment of new judges to the appellate body and tried to force reform, which paralyzed the appellate body.

 

However, at Monday’s meeting, the Biden administration’s position on the agency remained unchanged, refusing to support the proposal to appoint new judges.

 

Although the Biden administration has officially taken over trade policy matters, observers do not expect any significant change in the direction of US government policy until the nomination of Chinese American Katherine Tai as US trade representative is confirmed.