China has created a list of products produced in the USA that would be freed from its 125 percent tariffs, and tacitly notifies companies about politics.
China has already granted tariff exceptions for selected products, including selected pharmaceuticals, microchips and aircraft engines, and asked companies to identify critical goods they need last week. However, the existence of a “whitelist” has not yet been reported.
The calm approach enables Beijing, who has repeatedly announced to fight until the end, unless the United States raised its 145 percent tariffs to get their public messages while taking practical steps to ensure concessions.
It was not immediately clear how many and which products were included in the list that the authorities did not publicly shared.
Instead, companies are contacted privately by the authorities and informed about the existence of a list of product classifications that would be excluded from the tariffs, according to one of the sources that work in a drug company that sells medical medication in China.
The company was contacted by the Shanghai Pudong government on Monday, said the source and added that the company had previously used tariff exceptions because it was based on some of its products on US technologies.
“We still have a lot of technologies that we need from the USA,” said the person.
The Canadian rapeseed farmers are preparing for an extra volatile season with existing Chinese tariffs, possible tariffs from the USA and the ongoing trade war between their two largest customers.
Another source stated that some companies were asked to turn to private authorities to inquire whether their own imported products qualify for the liberation.
The list of the excluded products also seems to be growing: China has dispensed with tariffs from ethaneimports from the USA, Reuters reported on Tuesday.
Large ethane processors had already applied for Beijing tariffs because the United States is the only supplier.
US President Donald Trump said on Tuesday that he thought that a trade agreement with China was on the horizon.
“But it will be a fair deal,” he said.
China’s Ministry of Commerce and Customs did not immediately respond to inquiries about comments.
Measurement of the effects of the tariff war
Two other sources said that China also monitors to assess the effects of the tariff war.
In a recent meeting, the authorities in East China asked a foreign company lobby group to “communicate all critical situations caused by tariff tensions to evaluate certain cases,” said one person with direct knowledge of the matter of Reuters.
The person rejected the city where the authorities held the meeting because the meeting was not public.
Front burner41:19Who wins when China and the USA fight?
A large part of Donald Trump’s global tariff regime aims at the Chinese economy, he says, to force the country into a deal for the United States. Nevertheless, the officials in China were disregarded – and claim that the tariffs injure the Americans more than Chinese, and to compare the campaign between Donald Trump and Mao Zedong’s “Cultural Revolution”. Chinese officials also reacted to Donald Trump’s tariff program, partly: “If the war is what the United States want, be it a tariff war, a trade war or another kind of war, we are ready to fight to the end.” David Rennie is a columnist of the economist, where he used to work as a correspondent for the magazine in Beijing. He accompanies us for a conversation about the relationship between China and the United States, why civil servants in China Trump see as a “revolutionary” figure and this as one of the great moments of opportunities in the modern history of China. For transcripts from Front Burner please visit: https://www.cbc.ca/radio/frontburner/transcripts (https://www.cbc.ca/radio/frontburner/transcripts)
Government officers in Xiamen, a city in the southeastern province of Fujian, in which a large harbor and a production base for electronics live, sent a survey on Sunday to assess the effects on the tariffs, a source with direct knowledge of the matter.
The survey was sent to textile companies and semiconductor companies and contained questions about products that they deal with the United States and the estimated effects of the US and Chinese tariffs on their business, according to the source.
