China has been developing a list of products made in the United States that will be tax-free by 125% to mitigate the impact of its trade war with the United States.
Officials have been informing companies about the policy, according to sources who spoke with Reuters.
China has imposed tariffs on specific products including pharmaceuticals, microchips and aircraft engines and has been asking companies to determine the key commodities they need. But the existence of the so-called “whitelist” has not been reported before.
See also: China’s factory activity drops as U.S. tariffs kill export orders
The quiet method allows Beijing to repeatedly express willingness to fight until the end unless the United States lifts it 145% tariffwhile taking practical steps to provide offers in private while keeping its public messaging.
The authorities have not shared it publicly, and have not immediately understood how many and which products are included in the list, refusing to name it as information not disclosed, two sources said.
According to one of the sources working for a pharmaceutical company that sells U.S.-made drugs in China, authorities are contacting the company privately and informing it of its existing product classification list.
Sources said the Shanghai Pudong government contacted the company on Monday, adding that the company had previously lobbied for tariff exemptions because it relied on U.S. technology from certain U.S. products.
“We still have a lot of technology from the United States,” the person said.
Tariffs on ethane imports
Another source said some companies were asked to contact authorities privately to ask whether they are eligible for exemptions for their imported products.
The list of exempted products seems to be growing, too. On Tuesday, it was revealed that China exempted tariffs on ethane imported from the United States.
Major Ethane processors have been seeking tariff exemptions from Beijing, as the United States is the only supplier.
U.S. President Donald Trump said Tuesday he believes the trade deal with China is coming soon. “But it will be fair,” he said.
China’s Ministry of Commerce and Customs did not immediately respond to a request for comment.
Assess the impact
Two other sources said China is also investigating companies to assess the impact of the tariff war.
At a recent meeting, authorities in eastern China asked foreign business lobby groups to “communicate all the critical situations arising from a specific case”, a direct understanding of the matter, told Reuters.
The person declined to disclose that the authorities held the city where the gathering was not open.
A source who knows directly about the matter said a city in southwestern Fujian Province, a city in Fujian Province, home to electronic ports and electronic products manufacturing bases, also sent a survey to the company on Sunday to assess the impact of the tariffs.
Sources said the investigation has been sent to textile companies and semiconductor companies and includes questions about products dealt with in the U.S. and the estimated impact of U.S. and Chinese tariffs on their businesses.
Move to ensure retail supply lines
At the same time, we Retail giant Walmart and targets It is reported that due to uncertainty about U.S. tariffs, the order has been maintained with Chinese toy and ceramic suppliers after the order has been paused.
CNN reported on Tuesday that trade resumption with the two factories was after a meeting last week between Donald Trump and heads of top U.S. retailers, CNN reported last week that store shelves will soon be vacant throughout the U.S.
The move “shows that retailers are trying to ensure their stores remain in stock” as tariffs could undermine supply chains that are critical to their bottom line and ensure the survival of major factories in China.
- Jim Pollard’s Extra Input and Editing by Reuters
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