Ministry of Commerce compiles exemption list as trade tensions continue
DUBAI: China is reportedly weighing tariff exemptions on select US imports in a sign that Beijing may be rethinking aspects of its trade war strategy amid mounting economic concerns. A taskforce from the Ministry of Commerce has begun collecting lists of goods that could be exempted from up to 125 percent tariffs, with input invited from businesses and industry groups.
Financial news outlet Caijing cited sources saying that eight semiconductor-related items may be among the goods to receive exemptions—though notably, memory chips were excluded. Reuters was unable to verify the circulated list, and repeated calls to China’s customs department went unanswered. The Ministry of Commerce also declined to comment.
Signs of Economic Strain
While China has projected a hardline stance in the face of ongoing US tariffs, the country’s post-pandemic recovery has faltered. Consumer spending remains weak, and efforts to redirect export-oriented companies toward domestic markets have seen mixed results. According to business owners, local demand offers lower profits and inconsistent customer behavior.
“This is clearly a sign that economic pain is taking priority over posturing,” said an economist based in Hong Kong, who asked not to be named. “Exemptions will help some Chinese firms survive and could ease inflationary pressures abroad.”
Strategic Trade Calculations
The proposed exemptions mirror similar measures taken by Washington, which has also granted relief to select Chinese imports such as electronic goods. But while the US frames its moves as targeted adjustments, Beijing’s gesture may be more broad-based in an effort to stabilize its manufacturing sector.
China has repeatedly stated it would fight to the end unless the US rolls back tariffs imposed during the Trump administration and expanded under President Biden. However, analysts say that the exemptions are also aimed at alleviating pressure on US markets, especially ahead of a contentious US election cycle.
What Comes Next?
It remains unclear when a final list of exempted items will be announced, but business groups have been urged to submit recommendations swiftly. If enacted, the exemptions would mark the most significant softening in China’s trade posture since 2019.
Whether these exemptions will pave the way for renewed trade talks remains uncertain, but they suggest a recognition in Beijing that economic stability may now trump geopolitical brinkmanship.
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Categories: Global Trade, China Economy, US-China Relations
Tags: China tariffs, US imports, semiconductor trade, Ministry of Commerce, trade war, Beijing economic policy
