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Good news for Sino US trade, good for us company registration


Since the upgrading of the Sino US trade war in 2018, some enterprises engaged in US trade have been affected, and some Chinese enterprises engaged in investment in the US market have also hesitated. Now the Sino US trade war has ushered in good news. The US side will cancel the tariffs imposed on Chinese products in stages. In this context, it is good to register American companies.

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The United States cancels and reduces tariffs

On December 13, through the joint efforts of the economic and trade teams of China and the United States, the two sides reached an agreement on the text of the first phase of the economic and trade agreement between China and the United States on the basis of the principles of equality and mutual respect. The U.S. side will fulfill the relevant commitments of phasing out the imposition of tariffs on China's products, and realize the transformation from increasing to decreasing.

On December 13, US Trade Representative Office (USTR) released the statement of the first phase of economic and trade agreement between the two sides. The statement states:

① The U.S. will cancel the plan of adding 25% to 30% of China's imports of about 250 billion US dollars (including 34 billion list 1, 16 billion list 2 and 200 billion list 3), and maintain 25% tariff;

② The tariff on China's imported goods of about 120 billion US dollars (i.e. in the list of 300 billion list 4A that has been imposed since September 1) has been reduced from 15% to 7.5%;

③ Cancel the tax increase plan for China's imported goods on the list 4b of 300 billion US dollars scheduled for December 15.

In order to implement the results of recent negotiations between China and the United States on economic and trade issues, the State Council decided not to impose tariffs on some imported goods originating in the United States.

Good news for US companies

Under the good news of Sino US trade tariff, the advantages of registering US companies are more prominent:

① It is convenient to register American companies for overseas financing and listing. The United States has the largest financing market, is the gathering place of international funds, and American IPO is easier to achieve than domestic IPO. Therefore, many domestic enterprises are rushing to the U.S. market for curve listed cameras. After registering a U.S. company, you can use the favorable conditions of the U.S. company to raise funds overseas.

② Foreign exchange control of registered U.S. companies, free capital in and out. The United States has no foreign exchange control to facilitate international trade and avoid trade barriers. Moreover, we can take advantage of the fact that the United States has no foreign exchange control and free trade to directly receive and open letters of credit, so as to avoid the loss of exchange rate difference.

③ Registering a U.S. company can help companies build an international image. The United States has the most perfect multi-level capital market system and financial system in the world and is a world power. It is easy to set up an international brand image and improve the company's popularity and reputation by registering an American company.

④ After registering with a US company, we will make reverse investment and enjoy the mainland preference. Joint ventures or joint ventures between US companies and Chinese companies can enjoy various preferential policies in the mainland.

⑤ Registering a U.S. company can achieve a reasonable tax reduction. Some states in the United States, such as Nevada and Delaware, have low tax rates and few taxes, which are very suitable for enterprises to carry out international trade.

⑥ Registration in the United States is convenient for visa application and immigration. Sending invitations from US companies facilitates business activities in the US and facilitates visa and immigration.

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