March 5 Macroeconomic Index:China's additional tariffs on the United States and new international political and economic trends

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Domestic News

1. The Customs Tariff Commission of the State Council issued an announcement on imposing additional tariffs on certain imported goods originating in the United States

2. Conference Speaker: Promote the promulgation of the Law on the Promotion of the Private Economy as soon as possible

3. The Third Session of the 14th National People's Congress opened on the morning of March 5 and will last for seven days

4. In the first two months of this year, the scale of local bond issuance increased significantly

5. China's warehousing index continued to remain in the expansion range in February

 International News

1. The U.S. "Department of Government Efficiency" found that the Department of Defense has about $80 million in "wasteful spending"

2. Trump's latest statement: a US-Ukraine mineral deal is still possible

3. An emergency summit of Arab countries will be held, and Egypt's proposed plan for the reconstruction of Gaza is expected to be adopted

4. The White House confirmed that it will impose tariffs on Canada and Mexico from 0:00 on the 4^th

5. The EU emphasizes increasing defense spending and strengthening defense capabilities

Domestic News

1. The Customs Tariff Commission of the State Council issued an announcement on imposing additional tariffs on certain imported goods originating in the United States

In accordance with the Customs Law of the People's Republic of China, the Customs Law of the People's Republic of China, the Foreign Trade Law of the People's Republic of China and other laws and regulations and the basic principles of international law, with the approval of the State Council, tariffs will be imposed on certain imported goods originating in the United States from March 10, 2025. The relevant matters are as follows:

1. An additional 15% tariff will be imposed on chicken, wheat, corn and cotton, and the specific scope of commodities is shown in Annex 1.

2. An additional 10% tariff will be imposed on sorghum, soybeans, pork, beef, aquatic products, fruits, vegetables and dairy products, and the specific scope of commodities is shown in Annex 2.

3. For the imported goods listed in the annex originating in the United States, the corresponding tariffs shall be levied on the basis of the current applicable tariff rates, and the current bonded and tax reduction and exemption policies shall remain unchanged, and the additional tariffs imposed this time shall not be reduced.

4. Before March 10, 2025, if the goods have been shipped from the place of departure and imported between March 10, 2025 and April 12, 2025, the additional tariffs imposed in this announcement shall not be levied.

2. Conference Speaker: Promote the promulgation of the Law on the Promotion of the Private Economy as soon as possible

Lou Qinjian, spokesman for the Third Session of the 14th National People's Congress, said that in December last year, the draft law on the promotion of the private economy was submitted by the State Council to the Standing Committee of the National People's Congress for initial deliberation. It was reconsidered last month. For the first time, the draft law has written into law the principle of upholding the "two unswerving" principles and promoting the "two health," and has elevated the major principles and policy measures of the CPC Central Committee on promoting the development of the private economy into legal norms, which is of great and far-reaching significance for ensuring that the economy of all forms of ownership uses the factors of production equally in accordance with the law, participates in market competition fairly, and is equally protected by the law. The next step will be to conscientiously do a good job in revising and improving the draft in accordance with the Standing Committee's continued deliberations and the opinions and suggestions of various quarters, and promote the promulgation of the law as soon as possible.

3. The Third Session of the 14th National People's Congress opened on the morning of March 5 and will last for seven days

The Third Session of the 14th National People's Congress (NPC) held a press conference at the Great Hall of the People today (March 4), at which Lou Qinjian, spokesperson of the NPC, answered questions from Chinese and foreign reporters on the agenda of the session and the work of the NPC. Lou Qinjian introduced that the Third Session of the 14th National People's Congress will open on the morning of March 5 and close on the afternoon of March 11, with a duration of 7 days and a total of 3 plenary sessions. There are seven items on the agenda.

4. In the first two months of this year, the scale of local bond issuance increased significantly

In the first two months of 2025, a total of 1.86 trillion yuan of local bonds were issued across the country, a significant increase over the same period of the previous year. Among them, many local bonds are used for implicit debt swaps, helping many places to promote the elimination of implicit debts. According to the data, from January to February this year, the scale of local bond issuance increased by 918.9 billion yuan over the same period last year, the highest level in the same period in history. From the perspective of issuance interest rates, the cost of issuing local bonds continued to fall.

5. China's warehousing index continued to remain in the expansion range in February

The China Federation of Logistics and Purchasing announced today (March 4) the China Warehousing Index for February. The changes in the index show that due to the impact of holiday factors, the number of working days has decreased, and the warehousing index has fallen month-on-month, but the index is still running in the expansion range, the demand for warehousing business has maintained steady growth, enterprises have been actively stocking, and the industry as a whole has maintained a stable and positive operation trend. China's warehousing index was 50.2% in February, down 2.3 percentage points from the previous month, and continued to run in the expansion range. The demand for warehousing business continued to grow steadily, especially in the commodity market.

International News

1. The U.S. "Department of Government Efficiency" found that the Department of Defense has about $80 million in "wasteful spending"

On March 3, local time, U.S. Department of Defense spokesman Sean Parnell said on the same day that the U.S. "Department of Government Efficiency" found that the Department of Defense had about $80 million in "wasteful spending". Parnell said he believes these preliminary findings could save $80 million in wasteful spending. Parnell listed several projects that have been identified by the Department of Government Effectiveness, including $1.9 million for the Air Force to "overall DEI transformation and training" and $1.6 million to the University of Florida to "study the social and institutional hazards of vulnerability and resilience to climate hazards in Africa's Sahel region."

2. Trump's latest statement: a US-Ukraine mineral deal is still possible

According to CNN and other U.S. media, on March 3, local time, U.S. President Trump said at the White House that he believes that a U.S.-Ukraine mineral agreement is still possible, and Ukrainian President Volodymyr Zelensky should be more grateful for the support of the United States. Trump said that despite his frustration with Kyiv, a U.S.-Ukraine mineral deal is still possible. According to CNBC, when asked if the agreement had lapsed, Trump said, "No, I don't think so." He also said that the U.S.-Ukraine mineral agreement is a "good deal" for the United States, and he will give an update on the situation in a speech at a joint session of Congress on the evening of the 4th local time.

3. An emergency summit of Arab countries will be held, and Egypt's proposed plan for the reconstruction of Gaza is expected to be adopted

The emergency summit of Arab countries on the Palestinian-Israeli issue is scheduled to be held in Cairo, Egypt on the 4th local time, and local media said that the summit will discuss three topics, and the reconstruction plan of the Gaza Strip proposed by Egypt is expected to be adopted at the summit.

4. The White House confirmed that it will impose tariffs on Canada and Mexico from 0:00 on the 4th

On March 3, local time, the White House confirmed that the United States would impose 25% tariffs on goods imported from Mexico and Canada at 0:00 EST on March 4 and 23:00 Mexico time on March 3. U.S. President Trump said on the 3rd that the U.S. imposed 25% tariffs on Mexican and Canadian goods would take effect on March 4. Trump said there was no room for consensus on tariffs on Mexico and Canada.

5. The EU emphasizes increasing defense spending and strengthening defense capabilities

European Council President Costa said on the 3rd that the extraordinary EU summit on March 6 will approve specific decisions to strengthen Europe's defense capabilities, make Europe stronger, more autonomous, and more capable of defending itself, and continue to support Ukraine to achieve a comprehensive, just and lasting peace. Costa also welcomed Trump's push for talks with Russia. Costa said that the European side is willing to participate in these negotiations to ensure a comprehensive, just and lasting peace in Ukraine and to ensure the security of all European countries.

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