The Biden administration has announced significant tariff increases on Chinese products in several key sectors, including semiconductors, electric vehicles, batteries, and medical products. These hikes are aimed at pressuring China to eliminate unfair trade practices related to technology transfer, intellectual property rights, and innovation, according to a White House statement.
The tariff rate changes follow a mandatory four-year review of previous tariffs on China, which found that China has not eliminated many of its acts involving forced technology transfer. U.S. Trade Representative Katherine Tai stated that these actions are a response to China’s failure to address these issues.
In the medical sector, the tariff increases target products such as syringes, face masks, and gloves – areas where the U.S. has sought to boost domestic production in the wake of the COVID-19 pandemic. The U.S. imported over $14 billion worth of medical equipment in 2023 and has already imported nearly $15 billion so far this year.
China’s commerce ministry has voiced opposition to the tariff hikes and has vowed to take measures to defend its interests, according to Reuters.
These actions by the U.S. come as Europe is also reassessing its trade relationship with China. Last month, the European Commission launched an investigation into allegations that China’s procurement market for medical devices has become increasingly closed to European companies and products.
Additionally, medical device firms operating in China have been grappling with changes in how the Chinese government pays for products, including an anti-corruption campaign last year and volume-based procurement policies aimed at lowering prices through large-volume purchasing.
