How Many Trade Agreements Does China Have
But because the legal and tax professions are effectively divided in China, few law firms are familiar with China`s free trade agreements and, as a result, ignore them when they structure foreign investment in the country. This is problematic because the identification and ability to use existing free trade agreements should often be taken into account in the statutes – and be negotiated in advance with customs and tax officers in China. Otherwise, there may be general tax costs that are far from necessary. Some consultants are also known to have deliberately chosen to withhold such data in order to prevent an CPP investor from becoming interested in external markets and losing his client in another country, perhaps better suited to the client`s needs. Many Chinese advisers are simply not aware of the importance of free trade agreements between China and even of the procedure that followed the creation of a Chinese company with local customs authorities, including the intention to invoke the status of the treaty as part of an applicable free trade agreement. If this is not the case with customs registration in China, the company may lose all the contractual benefits to which it is truly entitled. The People`s Republic of China has bilateral trade agreements with the blocs, countries and their two specific administrative regions: Note: Any customs union, common market, economic union, customs and monetary union, economic and monetary union is also a free trade area. The Free Trade Agreement between China and Switzerland is the first bilateral free trade agreement signed between China and a country on the European continent and one of the world`s top 20 economies. China`s efforts to promote international trade diplomacy did not end with WTO accession in 2001.
China is increasingly active in pursuing regional trade agreements (RTA). China`s RTA negotiating strategy was developed from a starting situation in which no regional agreement was reached at the time of WTO accession in 2001. China`s strategy was to start small, local negotiations, reflecting in part the ease of negotiations and learning experiences related to sequential negotiations. The first RTA was with Hong Kong and Macau in 2003, and the first developed country RTA was with New Zealand in 2008. With the exception of the ASEAN agreement, the first 12 Chinese ATRs were linked to relatively small trading companies. In this way, it has been easier to obtain precedents for future reports and negotiations and to take new initiatives. The Chinese RTAs in this first group also show more differences than in the regional agreements between the United States and the EU. U.S. regional agreements generally offer accelerated bilateral tariff suppression in exchange for unilateral de facto liberalization of service by the partner.
The EU agreements focus on the legal structure and competition law and have encouraged partners to make progress in staggering agreements before reaching a comprehensive free trade agreement. On the other hand, Chinese agreements are more different from partners. An Indonesian product containing, for example, Australian coins could expect tariffs elsewhere in the Asean Free Trade Area. Bilateral trade between China and Costa Rica increased in 2014 to $5.3 billion, a 145 percent increase over 2006. “The economic benefits of the agreement may be marginal for Southeast Asia, but there are some interesting trade and customs dynamics for Southeast Asia,” said Nick Marro of the Economist Intelligence Unit (EIU). List of agreements between two states, two blocs or one bloc and one state. Further down the pipeline, there are possible agreements with India, South Korea and an agreement between China and Japan and Korea.