Beijing is reportedly considering exempting certain US goods from its retaliatory tariffs of 125%, signaling a potential shift in its stance on the ongoing trade war with Washington. This move comes amidst growing concerns within China about the economic repercussions of the prolonged trade dispute.
Key Points:
* Focus on Necessity: A Ministry of Commerce task force is actively gathering lists from businesses, identifying US imports for which exemptions might be necessary. The focus appears to be on goods that are difficult to source elsewhere, potentially impacting Chinese supply chains if tariffs remain.
* Possible Exemptions: While an official list is yet to be released, reports suggest that medical equipment and certain industrial chemicals, such as ethane, are under consideration. There are also discussions about waiving tariffs on aircraft leasing payments, which could significantly benefit domestic airlines.
* Semiconductor Considerations: Interestingly, there are reports indicating that up to eight semiconductor-related items might be included in the exemptions. However, memory chips, a key product of US company Micron Technology, may not be among them.
* Industry Feedback: The American Chamber of Commerce in China has confirmed that the Chinese government is soliciting input from companies regarding essential US imports that could disrupt supply chains if tariffs are applied.
* Mirroring US Moves: This potential move by China echoes previous actions by the US, which earlier this month granted tariff exemptions on certain electronics imported from China, including smartphones and computers, due to concerns about rising costs.
* No Official Confirmation: While these discussions are underway, the Chinese government has yet to make any official public announcement regarding these potential tariff exemptions.
This development suggests a possible easing of trade tensions, driven by economic realities on both sides. However, China has consistently maintained that a full resolution requires the US to completely remove its tariffs. This potential step could be a pragmatic move to mitigate economic pain while the broader trade conflict continues.
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