According to the Global Times, starting from December 1 this year, 32 countries including EU member states, Canada and the United Kingdom will cancel the “Generalized System of Preferences” treatment for Chinese trade. At the same time, my country’s General Administration of Customs also recently issued an announcement stating that starting from the 1st of next month, it will no longer issue Generalized System of Origin Certificates of Origin for goods shipped to EU member states, the United Kingdom, Canada, Turkey and other places. This also confirms in disguise that Western countries have indeed decided not to grant China the “Generalized System of Preferences” tariff treatment.
The so-called “Generalized System of Preferences” is the general system of preferences. This is a system of exports of manufactured goods or products from developed countries (beneficiary countries) to developing countries and regions (beneficiary countries). A system of general, non-discriminatory and non-reciprocal tariff preferences is provided for semi-manufactured goods. That is, on the basis of the most-favored-nation tax rate, further concessions on import tariffs are provided to the beneficiary countries.
Since 1978, 40 countries have granted China GSP tariff preferences, such as EU member states, Russia, the United Kingdom, and Canada. Most of them have It is an important trading partner of China. Facts have proved that the GSP has indeed brought many economic and trade opportunities to China and has helped China achieve its export trade development goals to a large extent.
However, in recent times, these benefit-giving countries have begun to gradually cancel this preferential treatment. In addition to the 32 countries that will cancel China’s GSP benefits next month, Japan and the Eurasian Economic Commission have previously notified relevant decisions. At present, it seems that only Norway, New Zealand and Australia are still maintaining this policy. Regulation. It is worth mentioning that the decisions of those 32 countries may have an impact on some Chinese export companies.
For example, some industries in China that are low-profit and require a large number of labor will face more pressure in export trade, but in general Generally speaking, this impact is still within the controllable range. After all, in the years since the GSP was implemented, Chinese companies have made good use of this advantage, continuously developed and expanded their export business, and improved their own strength to a great extent.
my country’s ability to quickly recover its economic vitality from the impact of the COVID-19 epidemic has once again verified that the Chinese market and China’s import and export trade not only have huge potential, but also have the ability to cope with unexpected challenges. Strong resilience. Looking at the world, probably only China has been able to restore its domestic economy to its current level in such a short period of time. In addition to the country’s effective epidemic prevention and control, all this is inseparable from many large and small enterprises. The silent support of Chinese enterprises.
So, the decision of these Western countries to suddenly cancel the GSP treatment will not defeat China. However, while dealing with this variable, we should also be wary of the other party’s intentions. As we all know, Western countries have always selectively ignored China’s huge population base for a long time, and then continued to make a fuss about China’s growing economic aggregate.
In their view, as long as China’s economic aggregate is sufficient, it should not continue to enjoy GSP treatment. But in fact, although China’s economic aggregate has jumped to the second place in the world, China’s per capita GDP has not yet reached the ideal target. Due to the country’s large population base, China’s current per capita GDP is just over 10,000 US dollars, ranking 64th in the world and 13th in Asia.
So there is no doubt that China is still a developing country. my country’s State Councilor and Foreign Minister Wang Yi has also made it clear before that China’s current per capita GDP is only one-sixth that of the United States and one-quarter that of the European Union. Under such circumstances, China and these Western countries are required to achieve the so-called ” “Equality” itself is a kind of “non-equivalence” behavior.
However, this time 32 Western countries unanimously decided to cancel the preferential treatment of China’s GSP trade, obviously because they do not want to continue to recognize the fact that China is a developing country. In addition, many people speculate that this may be because the United States is privately putting pressure on those European allies to force them to cancel the GSP treatment for China. In fact, it is not impossible, after all, this is their usual trick.
However, it should be noted that once the general preferential treatment for China is cancelled, it means that commodity tariffs will increase accordingly. This is not only detrimental to Chinese export companies, but will also have an impact on European countries. Why do you say that? Because in the context of increased tariffs, exporters will either reduce export trade or further increase the price of exported goods. Judging from the current disruption of the global supply chain, as far as the shortage of goods in some European countries, it seems that they are not…�Watch this happen.
And now the United States and Europe are facing serious inflation. If the price of China’s imported goods increases, it is obviously not in their interests. Recently, the reason why U.S. Treasury Secretary Yellen has made rumors that they intend to reduce tariffs on China is because the U.S. economy can no longer afford the consequences of economic games. But now 32 countries including the EU still choose to ignore the facts and blatantly cancel the general preferential treatment of tariffs. In the end, they are just waiting to shoot themselves in the foot. </p
