The Customs Tariff Commission of the State Council issued a public announcement on September 18, 2018 deciding to impose tariffs on about 60 billion U.S. dollars of imports originating in the U.S.: in accordance with the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on Import and Export Tariffs and other laws and regulations, and the basic principles of international law, and with the approval of the State Council, the Tariff Commission of the State Council has decided to impose tariffs on 5,207 tariff lines originating in the United States, about 60 billion U.S. dollars of goods, to impose a tariff of 10% or 5%, effective from 12:01 a.m. on September 24, 2018.

On July 11, 2018, the U.S. government announced a 10% tariff on approximately $200 billion of imports from China, and on August 2, it raised the rate to 25%.On September 18, 2018, the U.S. government announced the implementation of tariffs on approximately $200 billion of imports from China, with a tariff rate of 10% effective September 24, 2018, and a tariff rate of 25% effective 2019 The tariff rate was raised to 25% from January 1, 2018 onwards. The U.S. side is bent on having its own way, leading to escalating trade friction between China and the United States. In order to defend free trade and the multilateral system and safeguard its legitimate rights and interests, the Chinese side had to implement tariff-imposing measures on the announced list of about 60 billion dollars of goods.

In accordance with the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on Import and Export Tariffs and other laws and regulations, as well as the basic principles of international law, and with the approval of the State Council, the Tariff Commission of the State Council has decided to impose tariffs of 10% or 5% on 5,207 tariff lines, or about 60 billion U.S. dollars of commodities originating in the United States, to take effect as of 12:01 a.m. on September 24, 2018, as of the same date. If the U.S. side insists on further raising the tariff increase rate, the Chinese side will respond accordingly, and the relevant matters will be announced separately.

China once again reiterates that the implementation of the above tariff increase measures is aimed at curbing the escalation of trade friction and is a forced response to the unilateralism and trade protectionism of the U.S. China hopes that the U.S. side will stop the trade friction, and that China and the U.S. side will, through equal, honest and pragmatic dialogues, respect each other, and work together to safeguard the overall situation of bilateral economic and trade relations that are mutually beneficial and win-win, and to jointly safeguard the principles of free trade and the multilateral trading system, and to jointly promote the prosperity and development of the world prosperity and development of the world economy.

On July 11, 2018, the U.S. government released measures to impose tariffs on about 200 billion U.S. dollars of imports from China and sought public comments on the measures.On August 2, the U.S. side announced that it intended to raise the tariff rate on the said 200 billion U.S. dollars of imports from China from 10 percent to 25 percent. The measures of the United States side depart from the consensus reached during the many consultations between the two sides, leading to the escalation of trade friction between China and the United States, in serious violation of the relevant rules of the World Trade Organization, and to the detriment of China's national interests and the interests of its people.

In accordance with the Foreign Trade Law of the People's Republic of China, the Regulations of the People's Republic of China on Import and Export Tariffs and other laws and regulations, as well as the basic principles of international law, the Customs Tariff Commission of the State Council has decided to impose tariffs on 5,207 tariff lines of imports originating in the United States. The measure involves about 60 billion U.S. dollars in imported trade from the United States. The relevant matters are as follows:

I. A tariff increase of 25% on 2,493 tariff lines listed in Annex 1, a tariff increase of 20% on 1,078 tariff lines listed in Annex 2, a tariff increase of 10% on 974 tariff lines listed in Annex 3, and a tariff increase of 5% on 662 tariff lines listed in Annex 4, with the specific scope of the commodities as shown in Annexes 1 to 4, respectively.

II. for the imported commodities listed in the Annex originating in the United States, the corresponding tariffs will be imposed on the basis of the current mode of taxation and the applicable tariff rates, respectively, and the current bonded and tax exemption policies will remain unchanged, and the tariffs imposed will not be reduced or exempted.

III. Calculation of relevant import taxes:

Additional Customs Duty = Customs Duty Paid Price × Additional Customs Duty Rate

Customs duty = the amount of customs duty payable calculated according to the current applicable rate + the amount of additional customs duty.

Value-added Tax and Consumption Tax on import shall be levied in accordance with relevant laws and regulations.

Annex 1: List of commodities subject to 25% tariff increase against the US.pdf

Annex 2: List of commodities subject to 20% tariff increase against the US.pdf

Annex 3: List of commodities subject to 10% tariff increase.pdf

Annex 4: List of commodities subject to 5% tariff increase against the US.pdf