
China is considering exempting some imports from the U.S. from 125% duties and is asking companies to identify goods that could fall under the exemption.
A Commerce Ministry working group is assembling lists of goods that could be exempted from duties and is encouraging companies to submit their own proposals, Reuters reported.
Beijing is preparing to include eight goods related to semiconductor manufacturing on the list, though it is not talking about memory chips.
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“The Chinese government, for example, is asking our companies: what exactly are you importing from the U.S. that you don't have anywhere else and that would stop your supply chain?” said Michael Garth, president of the American Chamber of Commerce in China.
He added that some chamber members claim: they have been able to import goods in the last week without the new duties being applied.
A list of 131 categories of goods that can be exempted from duties was actively circulated among the business community and trade associations. Reuters could not confirm the accuracy of the list, but it allegedly included vaccines, chemicals and aircraft engines.
Beijing's final decision remains unknown, with Huatai Securities estimating that the list circulated among trade circles covers about $45 billion worth of imports from last year.
Washington says the current situation is economically unacceptable and has already granted duty exemptions for some electronic goods. China has repeatedly emphasized that it is ready to fight to the end until the US lifts its tariffs.
Photo: militarnyi.com.
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