AsianFin -- Reports on Friday offered signs of easing trade tensions between China and the United States as Beijing reportedly mulls exempting some U.S. imports from 125% tariffs or has taken actions to grant certain exemptions.
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The Chinese government is weighing granting pause on 125% retaliatory tariffs on some U.S. goods, Bloomberg cited people familiar with the matter.
It was reported that authorities are considering removing extra levies for medical equipment, some industrial chemicals like ethane and aircraft leases. Chinese airlines, which typically don’t own all of their planes, are facing increasing financial burdens as they pay leasing fees to third parties to use some planes, the report noted.
China has exempted some U.S. goods from tariffs and is asking firms to identify critical goods they need free of levy, Reuters quoted businesses that have been notified.
The American Chamber of Commerce in China (AmCham) said on Friday that companies in the pharmaceutical sector had reported that they had been able to import drugs to China over the past week with tariff exemptions. “It's pharmaceutical firms on the exemptions, but I believe it is drug-specific and not a sector-wide exemption,” said AmCham President Michael Hart when questioned if he could specify which sectors those companies came from.
China seems to have quietly rolled back 125% tariffs on some U.S.-made semiconductors, CNN learned from import agencies in Shenzhen. The import agencies discovered the exemption this week during routine customs procedures, though Beijing hasn’t made any official announcement. They said the exemptions apply to integrated circuits, also known as microchips or semiconductors.
When asked to confirm the report about China’s considering granting exemptions for some U.S. imports, Chinese Foreign Ministry spokesperson Guo Jiakun Guo Jiakun said he is not aware of the specifics, and he refer the report to competent authorities.
On a Friday press conference, Guo was questioned by whether the Trump administration tried to reach out to Beijing and if so, is China willing to engage in trade talks. "China and the U.S. are not having any consultation or negotiation on tariffs. The U.S. should stop creating confusion," Guo stated.
The Chinese government a day earlier has rebuffed U.S. trade overtures and called for removal of tariffs and fair dialogue.
Guo, on a Thursday press, indicated there hadn’t been engagement about trade negotiations yet. “None of that is true. For all I know, China and the U.S. are not having any consultation or negotiation on tariffs, still less reaching a deal,” said Guo when asked about the U.S. claims that China and U.S. are having talks and even about to reach a deal.
Guo repeated China’s position. “We will fight, if fight we must. Our doors are open, if the U.S. wants to talk. Dialogue and negotiation must be based on equality, respect and mutual benefit,” said Guo.
There have not been any economic and trade negotiations between China and the United States, said He Yadong, a spokesperson with China's Ministry of Commerce (MOFCOM) on Thursday, adding that any claims of progress in economic and trade talks between the two countries are groundless and have no factual basis.
The unilateral tariff imposition measures were initiated by the United States and if the U.S. side truly wants to solve the issue, it should face up to the rational voices from the international community and from within the United States, lift all unilateral tariffs on China, and find ways to address differences through dialogue based on equality, said He.
China's stance remains consistent as it maintains an open attitude toward consultation and dialogue. However, any form of consultations and negotiations must be conducted in an equal manner on the basis of mutual respect, He said. "We Chinese are not troublemakers, but we will not flinch when trouble comes our way. Intimidation, threat and blackmail are not the right way to engage with China," He stressed Beijing’s stance.
