China is considering partially exempting US imports from the 125% tariff and has asked companies to submit proposals for goods that could be excluded from the restrictions. About this informs Reuters agency.
A working group under the Ministry of Commerce of the People’s Republic of China is compiling lists of potential product items that could receive an exception and is calling on companies to submit their own options. Financial publication Caijing reported that Beijing plans to list eight categories of goods related to semiconductor manufacturing, though memory chips are not mentioned.
“The Chinese government, for example, is asking our companies: What exactly are you importing from the US that you don’t have anywhere else, and what could stop your supply chain?” – said Michael Hart, president of the American Chamber of Commerce in China.
According to him, some member companies of the chamber stated that during the last week they managed to import without applying increased duties.
A list of 131 categories of goods that could potentially be exempted from duties has been actively discussed in the business community and among trade associations. According to available data, the list includes vaccines, chemicals and aircraft engines. Although Beijing has not yet announced a final decision, analysts at Huatai Securities estimate that the likely list covers about $45 billion worth of US imports over the past year.
For its part, the US has already granted exemptions from tariffs to certain categories of electronics, but at the same time emphasizes that the general situation remains economically unacceptable. In response, China has repeatedly stated its intention to continue the confrontation until the US cancels its tariffs.
