How a U.S. Tax Loophole Supercharged China's Exports
Briefly

In 2016, Congress raised the tax-free import threshold for goods entering the U.S. from $200 to $800, which significantly influenced online shopping behaviors and the U.S.-China economic relationship. This policy change facilitated a surge in imports from Chinese companies on platforms like eBay, Amazon, and apps like Shein and Temu, making American consumers reliant on affordable goods. Consequently, millions of Chinese workers benefited from this boom in factory labor, as approximately four million packages entered the U.S. daily without customs inspection or duty fees, marking a transformation in international trade dynamics.
When Congress raised the threshold for imported goods to enter the United States tax-free to $800 from $200 nearly a decade ago, it threw open the door to the American consumer market.
This single policy change in 2016 helped transform the economic relationship between the two countries, making China the top source of imported goods.
Read at www.nytimes.com
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