China has taken a strategic step by developing a list of U.S.-made products that will be exempted from its 125% tariffs, a move aimed at mitigating the effects of the ongoing trade war with the United States. According to Reuters, Beijing is discreetly informing companies about this policy shift, which had not been previously disclosed.

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Among the products granted exemptions are select pharmaceuticals, microchips, and aircraft engines. Furthermore, China has expanded its list to include ethane imports from the U.S., as per the latest updates from Reuters. This decision comes as a response to requests from major ethane processors who rely on the U.S. as their sole supplier.

Data from the IndexBox platform indicates that the U.S. ethane export market has been experiencing significant growth, driven by increasing demand from Asia. This aligns with China’s recent moves, as it seeks to secure critical imports amidst the trade tensions.

While the specific products included on the exemption list remain undisclosed, companies are being privately notified about the list’s existence. Authorities are also conducting surveys to assess the impact of the trade war on businesses, particularly in sectors such as textiles and semiconductors.

U.S. President Donald Trump expressed optimism about reaching a trade agreement with China, emphasizing the importance of fairness in any forthcoming deal. Meanwhile, Chinese government officials have not yet commented on the development.

Source: IndexBox Market Intelligence Platform