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Tarriff on China

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Submitted By 34914mm
Words 931
Pages 4
Abstract This paper will demonstrate the how beneficial China will be for a long term foreign investment. Even though China changed their import and export policy to abide by the WTO for U.S to have a smooth transition, temporary adjusted their currency to appear affordable in trade, and is known for their below minimum wage workers; their current labor relation policies have many foreign investors concerned.

According to research, China has shown stability in growth for MNE to establish long term investment in this country. Some of the attributes of doing business in China includes importing/ exporting restrictions, labor relations, supplier financing, tax riles, depreciation schedule currency properties ad restriction, and supplier and sources of short term and long term, and debts. Import and Export
China’s entry into the World Trade Organization (WTO) has given U.S. farmers, manufacturers and service providers access to a large and growing market, resulting in the rapid growth of U.S. exports to China. Upon entering WTO, WTO required China to reduce its tariffs and other barriers to U.S. exports without requiring the United States to reduce any tariff. In 2001, China agreed to this and has become the United States’ third largest trading partner behind Canada and Mexico.
An important component of that increased trade is U.S. exports. Although the U.S. exports declined by 10 percent throughout the rest of the other countries; the U.S. exports to China increased by 66 percent. Removal of import quotas for American-made automobiles and motor-cycles has given U.S. producers access to one of the world’s largest and fastest growing markets for those products. “China adopts two-column tariff for imports: a general rate and a preferential rate. The general tariff rate applies to goods from countries and regions that have not signed reciprocal tariff

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