China brings new tariff law amid simmering tensions with US, EU

China new tariff law: China's legislature passed a new tariff law on Friday, signalling its reiness to retaliate against tre restrictions imposed by major partners like United States and European Union. This move comes amid simmering tensions and concerns over China's industrial policies.

Law bolsters tre defense capabilities

law, effective December 1, 2024, outlines a legal framework for tariffs on Chinese imports and exports. It covers a range of topics, from defining tax incentives to authorising counter-tariffs against countries breaching tre agreements.

Response to rising tensions

This legislation strengns China's tre defense capabilities, a trend that began under President Xi Jinping in 2012. Previous measures empowered officials to counter tre restrictions impacting flow of goods, data, and personnel.

Analysts believe heightened tre tensions with US and EU prompted China to solidify its tre defense mechanisms. Professor Henry Gao of Singapore Management University compares new law to a "nuclear weapon" - a deterrent rar than a weapon of first use. He acknowledges earlier provisions for retaliatory tariffs but suggests China aims to clearly establish its right to respond in kind.

New tre front opens in Europe 

Growing concerns about a flood of cheap Chinese industrial goods in EU are fuelling a new front in West's tre war with China. EU is considering tariffs on Chinese electric vehicles, while China investigates alleged dumping of EU brandy.

(With Reuters inputs.)