China exempt some US imports from applying tariffs for 125% and asked companies to identify critical goods that need without levies, according to the notified companies, in the clearest signal until now of the concern of the Asian giant for the economic consequences of The commercial war.
The dispensation, which continues to declarations of de -escalated from Washington, indicates that the two largest economies in the world are prepared to contain their conflictwhich had frozen much of the bilateral trade, feeding fears of a global recession.
Beijing Exemptions –What business groups are waiting extend to dozens of industries– They slightly promoted up to the US dollar and raised stock markets in Hong Kong and Japan. “As a reciprocal movement, it could offer a potential way to reduce tensions,” said Alfredo Montufar-Helu, main advisor to the China Center for The Conference Board, an analysis group.
A statement issued Friday by the Politburo, the elite decision body of the Communist Party, focused on efforts to maintain internal stability through support for companies and workers most affected by tariffs.
The statement, after the usual monthly meeting of the Politburó, showed that Beijing is also willing to resist and fight a commercial warning war if necessary, with the aim of better supporting the pain derived from the break in the relationship with Washington.
China’s work
A working group from the Ministry of Commerce is collecting lists of articles that could be exempted from tariffs and is asking companies to present their own orders, according to a person aware of that management.
The Ministry reported Thursday that it held a meeting with more than 80 foreign companies and cameras of commerce in China to analyze the impact of US tariffs on investment and foreign signatures operations in the country.
“The Chinese government, for example, has been asking our companies what kind of products are importing from the USA that they cannot get anywhere else, and whose absence would interrupt the supply chain,” said Michael Hart, president of the US Chamber of Commerce in China.
Hart added that some member pharmaceutical companies reported having been able to import medicines to China without tariffs. He believes that exemptions are specific to certain drugs, not for the entire industry.
The executive director of the French Aeronautical Motors manufacturer Safran On Friday he said that the previous night they were informed that China had granted tariff exemptions to “a certain number of airparic pieces”, including engines and landing trains.
The tariff exemptions that Beijing is considering could relieve the costs of companies in China and reduce pressure on US exports at a time when the Trump administration has given signs of wanting to reach an agreement with Beijing.
The European Union Chamber of Commerce also said that it raised the issue of exemptions to the Ministry of Commerce and is waiting for an answer.
“Many of our member companies are significantly affected by tariffs on critical components imported from the US.” Jens Eskelund said.
A list with 131 categories of products under consideration for exemptions circulated on Friday through Chinese social networks and between companies and commercial associations. Reuters could not verify the list, which included from vaccines and chemicals to reaction engines.
Huatai Securities estimated that this list represents imports worth $ 45,000 million last year.
The Customs Agency and the China Ministry of Commerce did not respond to comments requests. The Ministry of Foreign Affairs indicated not to be familiar with the tariff exemption plans and derived the consultations to “the corresponding authorities.”
A fight that could last
Although Washington has said that the commercial confrontation with China is economically unsustainable and has already offered exemptions for some electronic products, China has reiterated that it is willing to fight until the end, unless it was. UU. Levante its 145%tariffs.
But the Chinese economy entered this commercial war with an increase in unemployment, deflationary pressures and a growing concern for excess exports without selling that could further push internal prices down.
Although China had a commercial surplus of one billion dollars in 2024, it also depends on the US for key imports, such as the petrochemical ethane necessary to manufacture plastics, and some medications.
Great pharmaceuticals like Astrazeneca and GSK They have at least one production site in the US for medications sold in China, according to data from the Chinese government.
Large ETAN processors have already requested exemptions from Beijing, since USA is the only supplier.
Exemptions could be just a small step in a long process.
“For those goods manufactured in the US that cannot be acquired in any other country, I do believe that there is interest in exempting them from tariffs, even if this is done unilaterally,” said Montufar-Helu.
“But for other products such as energy and agricultural commodities, I think the calculation is very different, since China can resort to other sources.”
Source: Ambito
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