China has quietly established a list of U.S.-made products that will be exempt from its 125% tariffs, with authorities privately notifying affected companies. This move is part of Beijing’s strategy to alleviate the impact of its ongoing trade war with the United States. According to sources familiar with the matter, China has already exempted certain products, including pharmaceuticals, microchips, and aircraft engines, and is encouraging firms to identify essential goods that would benefit from tariff relief.
Though the specifics of the “whitelist” have not been publicly disclosed, this policy provides Beijing with an opportunity to offer practical concessions while maintaining its firm stance in public messaging. While China has repeatedly emphasized its willingness to continue the trade dispute unless the U.S. lifts its own tariffs, this behind-the-scenes initiative signals a shift toward easing some of the trade tensions.
Companies Contacted Privately About Exemptions
Several sources confirmed that companies are being privately contacted by Chinese authorities about the existence of the tariff exemption list. These companies are informed of the product categories that qualify for tariff relief, with one source detailing how the Shanghai Pudong government reached out to a pharmaceutical company on Monday. This company, which relies on U.S. technologies, had previously lobbied for tariff exemptions due to its dependence on imported U.S. goods.
“We still rely on many U.S. technologies for our products,” the source explained. This suggests that some companies may need to engage directly with authorities to determine if their products qualify for exemptions, as the list of exempted goods continues to expand.
Tariff Exemptions Extend to Ethane Imports
The list of tariff-exempt products seems to be growing. For example, China has granted tariff exemptions on ethane imports from the U.S., a key product for the Chinese chemical industry. Major ethane processors had already approached Beijing for tariff waivers, as the U.S. is the sole supplier of the commodity. The expansion of exemptions for such critical products further underscores China’s attempts to mitigate the consequences of the tariff war.
Trump Signals Potential Deal, But Demands Fair Terms
U.S. President Donald Trump expressed optimism about the possibility of a trade deal with China, stating that negotiations could result in a “fair deal.” However, he made it clear that the terms would need to be equitable for both sides. Trump’s comments suggest that the ongoing dialogue between the two nations is moving forward, albeit with continued demands for fairness and reciprocity.
China Surveys Companies to Assess Impact of Tariff War
In addition to granting tariff exemptions, China is actively surveying companies to gauge the broader impact of the tariff war. Authorities in Eastern China recently held a meeting with a foreign business lobby group to discuss the economic effects of the trade tensions. The goal of the meeting was to evaluate specific cases and better understand how tariffs are affecting businesses.
In a separate effort, government officials in Xiamen, a major port city in Fujian province, sent out a survey to businesses. The survey, distributed on Sunday, asked companies in the textile and semiconductor industries to assess the effects of the tariffs on their operations. The questionnaire sought information on the products traded with the U.S. and the estimated impact of both U.S. and Chinese tariffs on their businesses.
Ongoing Trade Tensions Continue to Shape Economic Strategy
The ongoing trade war between the U.S. and China continues to have far-reaching effects on industries in both countries. While Beijing is taking steps to mitigate the damage by exempting certain products from tariffs, the broader trade environment remains uncertain. Companies on both sides of the Pacific are continuing to adapt to the shifting landscape, as both governments explore ways to reduce tensions while protecting their economic interests.
