China to exempt some US goods from tariffs

China is considering exempting some US goods from its 125% tariffs and has asked companies to submit lists of items that might qualify. This move is the biggest indication yet of Beijing’s concern about the economic fallout from its trade war with Washington.

Caijing, a financial news magazine, reported today, citing sources, that Beijing is preparing to include eight semiconductor-related items on the exemption list, but memory chips will not be among them.

According to a source who spoke on condition of anonymity, a task force under the Chinese Ministry of Commerce is compiling lists of potentially exempt items and is asking companies to submit individual applications to determine which items qualify.

“For example, the Chinese government is asking our companies what types of goods you import from the US to China that you can’t find anywhere else, which could disrupt your supply chains,” said Michael Hart, president of the American Chamber of Commerce in China.