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China quietly lifts tariffs on select US imports – Reuters

China quietly lifts tariffs on select US imports – Reuters Photo: China is making concessions in the trade war with the United States (Getty Images)

While Beijing declares its readiness to "fight till the end" in the tariff war with the US, Chinese companies are receiving unexpected relief: goods critical for business may be exempt from duties, according to Reuters.

According to the agency's sources, the Chinese authorities have begun forming a list of American goods that will be exempt from the increased 125% tariffs.

It concerns the so-called "whitelist," the existence of which had not previously been publicly confirmed. Companies importing critically important products from the US are receiving individual notifications from Chinese officials about the possibility of exemption from duties.

Tariffs remain, but exceptions are being made

Beijing maintains a public rhetoric of tough confrontation, emphasizing that it will not yield in the trade war unless the 145% American tariffs are canceled. However, behind the scenes, practical steps are being taken to reduce pressure on its own economy.

The authorities have already exempted a number of goods from tariffs, including pharmaceutical products, microchips, and aircraft engines. The list is now expanding, and some companies have received notifications that their products may be excluded from the tariff regime.

Companies receive individual notifications

One of the sources, working in a pharmaceutical company, reported that the government notified them of the Pudong district in Shanghai. The company had previously applied for an exemption because it depends on American technologies in production.

According to the interlocutor, China still needs technologies from the US. Other firms, according to sources, were privately invited to contact the authorities to clarify whether the exemption from tariffs applies to their products.

Beijing collects data on damage from the trade war

In addition to targeted assistance, China is gathering information about the actual impact of the trade war on businesses. In Eastern China, government representatives held a meeting with foreign business associations, offering them to share cases of serious consequences of tariff pressure. Similar steps are being taken at the local level: the administration of the city of Xiamen sent local textile and semiconductor companies a questionnaire about the extent of damage from tariffs and the nature of trade with the US.

A signal for dialogue, despite tough statements

Despite the official hardline position, Beijing's actions indicate an attempt to ease tensions and preserve key supplies. Against this backdrop, China lifted tariffs on the import of ethane from the US — a step dictated by the fact that there are simply no alternative suppliers.

US President Donald Trump recently stated that a trade agreement with China could be reached, “but it will be fair.” For now, both sides are looking for ways to soften the consequences of the conflict — each on its terms.