Taiwan, Invasion & Trade, Part 2

Taiwan

President elect Lai Ching-te’s victory in Taipei ignited tensions across the Taiwan strait and now the geopolitical field waits to see if China will kick off World War Three. I’m only slightly joking, but Beijing has exerted diplomatic pressure on nations maintaining close ties with the island in the past and Taiwan’s decision to remain a democracy will no doubt ramp up China’s reunification process in the coming months. But how will that affect trade relations?

Latest Developments with The Uyghur Forced Labor Prevention Act and New Leadership at the Department of Homeland Security Signal Heavier Enforcement is Likely

Forced Labor Prevention Act

In recent years, the global spotlight has illuminated the grave concerns surrounding human rights violations within China’s Xinjiang region, particularly those impacting the Uyghur population. The Uyghur Forced Labor Prevention Act (UFLPA) stands as a pivotal piece of legislation designed to address these concerns and to ensure that products imported into the United States are devoid of forced labor originating from the Xinjiang region.

Challenges Ahead! – Requesting to be Excluded From the Xinjiang Exclusions

Xinjiang Exclusions

In April of this year U.S. Customs & Border Protection (CBP) issued Headquarters Ruling H330077. The ruling was in response to a protest filed by an importer that had a shipment of wearing apparel excluded from entry under a Withhold Release Order (WRO) at the port of Newark, NJ. The wearing apparel was processed from cotton produced in India, made into yarn and fabric in China, and converted to wearing apparel in Cambodia. None of the parties to the transaction were located in the Xinjiang Region of China.

The Domino Effect: What Would an Invasion of Taiwan Mean for Global Trade

Taiwan

Tensions are escalating in the South China Sea, a vital maritime route for international trade. Taiwan remains at the center of this conflict and in an increasingly interconnected world, the prospect of a Taiwan invasion has far-reaching implications for global trade and geopolitics. It’s becoming even more crucial to understand the potential repercussions of such an event on the global economy as a potential invasion from China becomes increasingly more likely.

Another China Competition Bill: The Future of Section 301 Exclusions

Section 301 Exclusions

The Trade Act of 1974 grants the President broad powers to manage trade relationships with foreign countries. Section 301 of the act allows the President, acting through the United States Trade Representative (ā€œUSTRā€), to impose retaliatory tariffs on imports from a country if the USTR determines that country’s economic conduct ā€œis unreasonable or discriminatory and burdens or restricts United States commerce.ā€

Doing Business with China Continues to Get More Difficult for U.S. Companies

The U.S. and China are in a trade war

The year 2022 saw a substantial increase in export restrictions applicable to China. The U.S. and China are not only in a trade war but there is also an effort by the U.S. to (1) prevent development of supercomputers, semiconductors and related products and technologies, and (2) prevent use of forced labor – especially involving the Uyghur minority in the Xinjiang region.