DUBAI: China is considering exempting some US imports from its 125 percent tariffs and is asking businesses to provide lists of goods that could be eligible in the biggest sign yet that Beijing is worried about the economic fallout from its trade war with Washington.
A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a source who spoke on condition of anonymity.
Financial news magazine Caijing reported on Friday citing sources that Beijing was preparing to include eight semiconductor-related items, although no memory chips.
A list of 131 categories of products eligible for exemptions was circulating widely on social media and among businesses and trade groups on Friday. Reuters could not verify the list, whose items ranged from vaccines and chemicals to jet engines.
Repeated phone calls to China’s customs department were not answered. Customs and the Ministry of Commerce did not immediately respond to faxed questions.
Bloomberg first reported China was considering tariff exemptions on Friday.
The exemptions signal that, like Washington, Beijing is deeply concerned about the economic pain rippling across the country as the world’s two largest economies decouple.
While Washington has said the current status quo is economically untenable and already offered tariff exemptions to some electronic goods, China has repeatedly said it is willing to fight to the end unless the US lifts its tariffs.
But beneath the bombast, China’s economy is entering the trade war flirting with deflation. Demand is weak and consumer spending and sentiment have never properly recovered from the pandemic levels.
The government is pushing tariff-hit exporters to pivot to local markets, but companies say profits are lower, demand weaker and customers less reliable.
Exemptions are a bigger gesture of support, although by allowing some trade to resume, they also reduce the pain for the US economy and take some pressure off the White House.
China considers exempting some goods from US tariffs
https://arab.news/67xmr
China considers exempting some goods from US tariffs
- A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs
- Bloomberg first reported China was considering tariff exemptions on Friday.
Russia says Ukraine attacked Putin’s home, Kyiv calls this ‘lie’
- Zelensky called Russia’s claim “complete fabrication” designed to derail peace process, suggested Moscow was preparing to intensify bombardment of Ukraine
KYIV: Russia accused Ukraine on Monday of having fired dozens of drones at one of President Vladimir Putin’s homes, an accusation that Ukraine called a “lie” aimed at undermining US-led efforts to end the war.
Russian Foreign Minister Sergei Lavrov, who does not typically announce drone strikes, said Ukraine had fired “91 long-range unmanned aerial vehicles” at Putin’s residence in the Novgorod region between late Sunday and early Monday, all of which were shot down.
“Given the complete degeneration of the criminal Kyiv regime, which has shifted to a policy of state terrorism, Russia’s negotiating position will be reconsidered,” Lavrov said, without elaborating.
Ukrainian President Volodymyr Zelensky, who met with US President Donald Trump on Sunday for talks on ending the war, called Russia’s claim “a complete fabrication” designed to derail the peace process and suggested Moscow was preparing to intensify its bombardment of Ukraine.
“Russia is at it again, using dangerous statements to undermine all achievements of our shared diplomatic efforts with President Trump’s team,” the Ukrainian leader wrote on X.
Russia’s accusation comes at a pivotal moment in the peace process.
Ukraine says it has agreed to 90 percent of a US-drafted peace plan — including the issue of post-war security guarantees — though the issue of territory in a post-war settlement remains unresolved.
Russia, which has stayed silent about what parts of the US plan it has agreed to, said Monday it was still committed to the peace process but would “revise” its position in light of the alleged drone attack.
Russia invaded Ukraine in February 2022, describing it as a “special military operation” to demilitarise the country and prevent the expansion of NATO.
Kyiv and its European allies say the war, the largest and deadliest on European soil since World War II, is an unprovoked and illegal land grab that has resulted in a tidal wave of violence and destruction.
Territory main sticking point
Trump has held talks with both sides in recent days, including a phone call with Putin on Monday that the White House described as “positive.”
During talks with Zelensky on Sunday, Trump offered Kyiv long-sought-after security guarantees for a period of 15 years, according to Kyiv.
But the issue of territory and the future of the Moscow-occupied Zaporizhzhia nuclear power plant in southern Ukraine remain unresolved, Zelensky said.
Zelensky said Monday that Kyiv was ready for “any” format of meetings — including with Putin if necessary — but said he still did not think the Kremlin chief wanted peace.
The current plan, revised after weeks of intense US-Ukrainian negotiations, would stop the war at the current frontlines in the eastern Donbas region and establish a demilitarised area.
But the Kremlin has shown no sign of compromise.
Putin said Monday that Russia was pressing ahead with its plan to capture four Ukrainian regions it announced the annexation of in 2022 and that his troops were “confidently advancing.”
Moscow on Monday said it took another village, Dibrova, in Ukraine’s eastern Donetsk region.
