Title: China Trade Barriers: Tariff & Non Tariff Barriers in International Business | Intrepid Sourcing
Headings: Trade Barriers in China: Tariff & Non Tariff Barriers
Trade Barriers in China: Tariff & Non Tariff Barriers
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Introduction
China Tariff Trade Barriers
China Non-Tariff Trade Barriers
Anti-Dumping Duties
Voluntary Export Restraints
Subsidies as China Trade Barriers
Exchange Rate Controls
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Content: There is no immediate benefit for the country imposing those limits to itself; it aims to prevent counter measures of another country that is suffering under cheap imports. These voluntary exports restraints are often part of trade negotiations between countries or groups of countries. Subsidies as China Trade Barriers
Subsidies are incentives for domestic producers to benefit from reduced costs. This policy is a China trade barrier to international trade since foreign firms may be unable compete price wise in the same market. The subsidies that the Chinese government gives out to its own manufacturers allow it to compete globally on price. If a factory is located in one of the many special economic zones they are able to benefit from reduced corporation tax, and other benefits include VAT rebates, direct cash subsidies, and even discounted utility rates. Up until 2008 foreign owned companies in China that exported over 70% of their product saw a 50% reduction in corporation tax. These subsidies are what have allowed China to grow in the global economic market. However these incentives are slowly being rolled back, as it is allowing other countries to benefit greatly from cheaper goods, but China itself having to face with paying higher prices for foreign goods.