The Chinese government has agreed upon a new import tax on American chicken imports. The new tax implemented this month, has been a cause for concern for many American food companies. The article, http://www.bbc.co.uk/news/business-11415036, explains that American chicken exporters are faced with duties up to 105.4 % for the next five years. This is a significant raise from the 43.1% these companies were faced with before. Historically, lower and middle class Chinese citizens could not afford foods like chicken and various other meats. But as China grows economically and as the Chinese minimum wage has grown significantly, the Chinese people have more money to spend on food. Therefore, chicken has become a very hot commodity in China. The Chinese government is encouraging the domestic production of the animal, in hopes to stimulate it’s own chicken market. This import tax will significantly affect many American companies that were reaping the rewards off the newfound popularity and demand for chicken in China. Many companies such as; Tyson Foods, Keystone Foods, and Pilgrim’s Pride Corporation will have to look at other ways to make up for these new taxes.
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