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Trade war leading to delays and increased inspections in China

With talks of trade wars between the U.S. and China, conducting business in China is becoming more difficult for American companies. This is in great part due to the Chinese government implementing tougher regulations. Chinese officials are also more likely to reject shipments after surprise inspections.

An article by Politico speaks of cherry exporters finding their shipment slowed at the Chinese border due to delays by customs. Those delays caused cherries within certain of these shipments to spoil. The length of delays in shipments also varied. And even when such inspections came to an end, there was rejection of shipments for seemingly arbitrary reasons.

Delays such as this appear to be happening for a large variety of shipments. While there has always been close scrutiny, inspections appear to be happening with greater frequency.

Retaliatory measures taken by both countries

It is difficult to know how long such a situation will exist. America now places tariffs on nearly half of goods imported from China. As tariffs placed upon American products by China does not have as much impact, China sometimes resorts to other methods to punish American companies. Such methods include delays in licensing. And Chinese officials always have the ability to tighten regulations.

It is often unclear why Chinese officials take such measures. It may be for other reasons than trade war concerns. But the point is that doing business in China can always remain unpredictable.

Implementing the appropriate business planning is certainly advisable for any company doing business in China. But this includes seeking advice from legal professionals who understand Chinese laws and customs. Having the right sort of advice can prove profitable. Mistakes can be expensive.

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