Export Alert! United States announces sanctions against these Chinese entities, involving tablet presses, molds China responds

US announces sanctions against Chinese entities involved in tablet presses and molds China responds

US announces sanctions on 13 Chinese entities and individuals

Recently, the US Treasury Department announced sanctions on 13 Chinese entities and individuals for participating in the multinational sale of illegal drug production equipment.

A spokesperson for the Chinese Embassy in the US responded to the matter, saying that while the US repeatedly claims to hope for drug control cooperation with China, it has once again unreasonably sanctioned Chinese entities and individuals, seriously infringing on the legitimate rights and interests of relevant companies and individuals. China strongly condemns this.

The spokesperson said that the reason for the US implementation of these sanctions is that these Chinese entities and individuals sold tablet presses, molds and other equipment to the US and Mexico.

As we all know, tablet presses and molds are ordinary commodities with legitimate uses and are widely used in normal industrial production. Moreover, according to international customs and practices, ensuring that international goods are not used for illegal purposes is the basic responsibility of import companies and the legal obligation of importing governments.

China has always strictly enforced drug control and adhered to the humanitarian spirit, and has been trying its best to help the US address the fentanyl problem. In May 2019, China was the first in the world to classify and regulate fentanyl substances, which played an important role in preventing their illegal production and trafficking as well as abuse.

However, the US not only disregards China’s goodwill, but also unreasonably sanctions institutions such as the Chinese Ministry of Public Security Forensic Science Center and the National Narcotics Laboratory under the pretext of the so-called human rights issues in Xinjiang. Now, it has repeatedly sanctioned Chinese companies and individuals, shifting the blame to China, seriously undermining the foundation of drug control cooperation between the two sides.

The spokesperson emphasized that the root of the widespread drug abuse in the United States lies within the country itself. The US population only accounts for 5% of the global population, but consumes 80% of the world’s opiate substances, and so far has not permanently classified fentanyl.

Despite the growing strictness of international and Chinese control over fentanyl-like substances, the fentanyl problem in the United States continues to deteriorate, with the number of deaths increasing instead of decreasing. The US should deeply reflect on this.

The US does not start with reducing domestic drug demand, strengthening prescription drug control, and strengthening drug harm propaganda and education. Instead, it arbitrarily wields the sanction stick against other countries, attempting to confuse the public, mislead the public, and shift the blame for its own inadequate governance. The American people and the international community clearly see this.

The US’s sanctions against Chinese companies and citizens will create further obstacles to Sino-US drug control cooperation, which will harm itself. If the US sincerely wants to solve the domestic drug problem, it should respect the facts, reflect on itself, correct its mistakes, and stop blaming others. China will continue to take necessary measures to safeguard the legitimate rights and interests of Chinese companies and individuals.

The US has repeatedly sanctioned China.

It has imposed sanctions on several Chinese pharmaceutical and technology companies.

On April 14th, the US Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on Suzhou Xol-Pharmaceutical Technology Co., Ltd., a Chinese company, believing that the company shipped 25 kilograms of fentanyl precursor chemicals to Mexico knowing that these chemicals would be used to produce illegal fentanyl.

The US Treasury Department also imposed sanctions on Wuhan Shuokang Biological Technology Co., Ltd., stating that its owner and three employees jointly sold these chemicals to drug trafficking groups, one of whom helped with Bitcoin transactions.

The US Department of Justice filed lawsuits against the four individuals on the same day. The Department of Justice claimed that fentanyl was flowing into the United States mainly from a drug trafficking group called Sinaloa, which obtained precursor chemicals from countries such as China to manufacture synthetic drugs in Mexico, and then transferred these drugs to the United States for collection, cleaning, and transfer.

About “whether to terminate tariffs on Chinese goods”

According to Reuters, US Deputy Trade Representative Sarah Bianchi stated that the US is analyzing whether to continue imposing tariffs on Chinese goods, and will not base the results on any “breakthroughs” in US-China trade relations.

Bianchi said, “We are conducting a review from an analytical perspective. As part of the review, we will not consider any breakthroughs in our trade relationship with China as part of the evaluation. We do not believe that this situation will occur. We are studying what is economically reasonable.”

In 2018 and 2019, former US President Trump imposed tariffs on thousands of imported products from China, worth about $370 billion at the time.

The current tariffs range from 7.5% on many consumer goods to 25% on automobiles, industrial components, semiconductors, and other electronic products.

The main products that avoid tariffs include mobile phones, laptops, and video game consoles.

After the first round of tariffs, the 1974 Trade Act Section 301 required a review, which began with preliminary notice procedures in May 2022.

Bianchi refused to disclose when the review would be completed, but he added that the end of 2023 is “reasonable.”

The US Trade Representative’s office will extend tariff exemptions for 352 Chinese imported goods for another 9 months by the end of 2022 (US extends tariff exemption for 352 Chinese products), which is currently set to expire on September 30. Some trade experts in Washington believe that this date may be a decision point for tariff reviews.

As the review progressed in May last year, some Biden administration officials advocated for the cancellation of some tariffs, as the Biden administration is trying to curb inflation.

US Treasury Secretary Janet Yellen said that canceling “non-strategic” tariffs would lower the cost of specific goods, while Trade Representative Katherine Tai believes that tariffs represent a “significant leverage” against China.

However, Bianchi pointed out that with inflation slowing down, discussions related to inflation-related tariffs have subsided.

Therefore, foreign trade companies that export related products should always pay attention to the country’s policy changes and adjust their export strategies reasonably.

Source: Guangming Net, NetEase News, Shipping Online, Mike Foreign Trade Talk, Cross-border Research Center, Foreign Markets

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