By Jamie Martin
China has started to exempt around 131 U.S. products from tariffs, covering roughly $40 billion in imports. The quiet shift aims to reduce the economic pressure caused by the ongoing trade war while helping Chinese industries stay operational.
Although the list is unofficial, businesses confirm they’ve imported goods without paying tariffs. The exempted items include medical equipment, ethane, and industrial chemicals critical for China’s plastics and manufacturing industries. This represents about 24% of China’s 2024 imports from the U.S.
Experts say this mirrors the US’s recent tariff relief moves, including exemptions for smartphones and electronics. According to RAND China Research Center's Gerard DiPippo, “China is likely trying to mitigate damage to its economy by avoiding a collapse in key imports.”
China has reportedly asked businesses to identify essential U.S. imports since April. Based on these inputs, exemptions are granted and adjusted based on domestic needs. Factories that depend on US-supplied ethane have already received waivers.
The trade war has hurt both economies. China’s industrial activity has fallen, and top banks have lowered the country’s growth forecast to near 4%. The exemptions aim to stabilize key industries while quietly matching Washington’s policies.
Beijing is also open to new trade talks, with the Chinese Commerce Ministry stating it is evaluating U.S. outreach. As economist Chang Shu notes, easing tariffs is “a pragmatic approach” that may cool tensions and support global economic stability.
Photo Credit: gettyImages-dilok-klaisataporn
Categories: National