China's Strategic Tariff Exemptions: Tensions and Economics Crossroads

China considers exempting some U.S. imports from high tariffs, signaling concern over economic impacts from the ongoing trade war. Efforts include seeking proposed exemption lists from businesses. While tariffs remain a point of contention, exemptions could ease tensions and economic pressure, allowing some trade resumption.

China is contemplating exempting certain U.S. imports from its hefty tariffs, marking a significant pivot in its ongoing trade war with Washington. This move reflects Beijing's growing concern over the potential economic fallout from the strained bilateral relations.

The Ministry of Commerce has formed a taskforce to compile lists of items eligible for tariff relief, urging companies to submit their requests. Caijing, a financial news magazine, reported that semiconductor-related products might be included, although specific memory chips are excluded.

This exemption strategy underscores Beijing's economic anxiety as the trade war impacts consumer demand and spending. While exemptions could ease economic tensions for both nations, they also reflect China's struggle with deflation and weak market conditions.

(With inputs from agencies.)