After the United States and European Union publicly expressed concerns that the controversial Hong Kong extradition bill could impact the city’s status as an international financial hub, the Chinese regime increased tariffs by 4 to 10 times on U.S. and EU-made seamless steel pipes.
Commentators analyzed that this could be a retaliatory move by Beijing after the two governments’ open criticisms.
After international criticism of the police use of force, Hong Kong’s top leader Carrie Lam announced on June 15 that the bill would be suspended indefinitely.
Statements
After protests escalated on June 12, the European Union Office to Hong Kong and Macao released a statement on June 13: “This [extradition bill] is a sensitive issue, with potentially far-reaching consequences for Hong Kong and its people, for EU and foreign citizens, as well as for business confidence in Hong Kong.”The statement also said Hong Kongers’ right to assemble and express themselves “freely and peacefully...need to be respected.”
The U.S.–Hong Kong Policy Act of 1992 governs the relationship after the city was reverted from British to Chinese rule in 1997. The Chinese regime had promised that the city remain autonomous under the “one country, two systems” model.
Hong Kong, as an autonomous free port, would enjoy special treatment from the United States, including in areas of visas, trade, and investments.
Anti-dumping Tariffs
The following day, China’s Ministry of Commerce (MOC) announced that it would impose anti-dumping tariffs on U.S. and EU-made high pressure temperature alloy-steel seamless pipes, with rates ranging from 57.9 percent to 147.8 percent.This means the Chinese regime has increased tariffs on U.S.-made pipes by nearly tenfold.
Beijing’s Retaliation
MOC announced the anti-dumping investigation on May 9, and increased the tariffs just after the United States and E.U. spoke in support of the Hong Kong protesters. The timing made commentators believe that Beijing was retaliating for their actions.“[Increasing tariffs] is a retaliation tactic that the Chinese regime is using to deal with the political pressures from the U.S. and EU. Meanwhile, it’s also an escalation of the trade dispute,” Tang Jingyuan, a U.S.-based China affairs commentator, told The Epoch Times on June 14.
The United States and China are in the midst of an ongoing trade dispute over tariffs and China’s unfair trade practices.
The United States, Canada, and EU currently have various anti-dumping tariffs on China-made steel products. Now that the Chinese regime is imposing high-rate duties on U.S. and EU products, “it clearly is a trade sanction,” Tang said.