Beijing
\nChina is considering exempting some US imports from its 125% tariffs and is asking businesses to provide lists of goods that could be eligible in the biggest sign yet that Beijing is worried about the economic fallout from its trade war with Washington.
\nA Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a source who spoke on condition of anonymity.
\nFinancial news magazine Caijing reported on Friday citing sources that Beijing was preparing to include eight semiconductor-related items, although no memory chips.
\nA list of 131 categories of products eligible for exemptions was circulating widely on social media and among businesses and trade groups on Friday. Reuters could not verify the list, whose items ranged from vaccines and chemicals to jet engines.
\nRepeated phone calls to China\u2019s customs department were not answered. Customs and the Ministry of Commerce did not immediately respond to faxed questions.
\nBloomberg first reported China was considering tariff exemptions on Friday.
\nThe exemptions signal that, like Washington, Beijing is deeply concerned about the economic pain rippling across the country as the world\u2019s two largest economies decouple.
\nWhile Washington has said the current status quo 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 tariffs.
\nBut beneath the bombast, China\u2019s economy is entering the trade war flirting with deflation. Demand is weak and consumer spending and sentiment have never properly recovered from the pandemic levels.
\nThe government is pushing tariff-hit exporters to pivot to local markets, but companies say profits are lower, demand weaker and customers less reliable.
\nExemptions are a bigger gesture of support, although by allowing some trade to resume, they also reduce the pain for the US economy and take some pressure off the White House.<\/p>\n","protected":false},"excerpt":{"rendered":"
Beijing China is considering exempting some US imports from its 125% tariffs and is asking businesses to provide lists of goods that could be eligible in the biggest sign yet that Beijing is worried about the economic fallout from its trade war with Washington. A Ministry of Commerce taskforce is collecting lists of items that […]<\/p>\n","protected":false},"author":2,"featured_media":474788,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-474769","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n