China’s foreign ministry said on Friday that no consultations or negotiations are currently underway with the United States on tariffs, amid reports suggesting Beijing may be quietly exploring limited exemptions on some American imports.
Responding to a question at a regular press briefing on Friday, China's Foreign Ministry Spokesperson Guo Jiakun said he was “not familiar with the specifics” of any plans to ease tariffs on US goods. He reiterated that China and the US were not engaged in any discussions related to tariffs at this stage.
However, according to a Reuters report citing businesses notified by authorities, China has granted exemptions on some US imports subject to its 125 percent retaliatory tariffs and is asking companies to identify additional goods that could be eligible.
The move is being seen as the clearest sign yet that the world’s two largest economies were prepared to rein in their trade war, assuaging concerns about the impact of the tariffs.
While no official shift has been announced, the internal outreach suggests Beijing is weighing targeted relief measures for select industries. The developments come amid a softening tone from Washington, which helped lift equity markets in Hong Kong and Japan and nudged the US dollar slightly higher.
A taskforce under the Ministry of Commerce is reportedly gathering input from industry players and requesting lists of US products that businesses would like to see exempted from tariffs, a person with knowledge of the matter said.
“The Chinese government, for example, has been asking our companies what sort of things are you importing to China from the US that you cannot find anywhere else and so would shut down your supply chain,” American Chamber of Commerce in China President Michael Hart said on Friday.
Some companies represented by the US business group have reported that they had imported goods in the past week without the new tariffs being applied, Hart said.
The chief executive of French aircraft engine maker Safran said on Friday it had been informed last night that China had granted tariff exemptions on “a certain number of aerospace equipment parts”, including engines and landing gear.
China’s Commerce Ministry said on Thursday it had held a meeting with more than 80 foreign companies and business chambers in China to discuss the impact of US tariffs on investment and the operation of foreign firms in the country.
The tariff exemptions under consideration by Beijing would provide cost relief for companies in China from drug makers to airlines and allow for less expensive imports of everything from semiconductors to petrochemicals. It could also take pressure off US exports at a time when the Trump administration has shown signs of wanting to make a deal with Beijing.
The European Union Chamber of Commerce in China also said it had raised the issue of tariff exemptions with the commerce ministry and was awaiting a response.
“Many of our member companies are significantly impacted by the tariffs on critical components imported from the US”, President Jens Eskelund said.
A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among businesses and trade groups on Friday.
Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines.
Huatai Securities said the list corresponded to USD $45 billion worth of imports to China last year.
China’s customs agency and Ministry of Commerce did not reply to requests for comment.
While Washington has said the trade stand-off with China is economically untenable and already offered tariff exemptions to some electronic goods, China has repeatedly said it is willing to fight to the end unless the US lifts its 145 percent tariffs.
But China’s economy headed into the trade war with rising unemployment, deflationary pressures and heightened concern that a mounting backlog of unsold exports could drive domestic prices even lower.
While China ran a nearly USD $1 trillion trade surplus in 2024, it also relies on the United States for key imports, including ethane, a petrochemical needed to make plastics, and some drugs.
Big pharmaceutical companies including AstraZeneca and GSK have at least one manufacturing site in the US for drugs sold in China, according to Chinese government data.
Major ethane processors have already sought tariff waivers from Beijing because the US is the only supplier.
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Source: TRT