This archive report was first published on 11 September 2019.
China has taken a step towards easing tensions in the protracted trade war with the US by announcing exemptions for several US products from punitive tariffs. The move, seen as an olive branch by Beijing, comes ahead of high-level talks in Washington next month.
The exemptions, which will become effective on September 17 and be valid for a year, include seafood products, anti-cancer drugs, alfalfa pellets, fish feed, medical linear accelerators, and mould release agents. This marks the first time Beijing has announced products to be excluded from tariffs.
Trade negotiators have said they will meet in Washington in early October, raising hopes for an easing of tensions between the world's two biggest economies. Both sides imposed fresh tit-for-tat tariffs on September 1 in the latest round of levies, which now cover goods worth hundreds of billions of dollars.
Analysts at Barclays have said that these adjustments signal that China is more willing to make progress in the October trade talks, likely toward striking a 'narrow' agreement that involves China buying more US goods in exchange for the US suspending further tariff hikes.
China's economy grew 6.2 percent on-year in the second quarter, the lowest rate in nearly three decades. President Donald Trump has said that the weight of the protracted trade war is damaging China more than the US, claiming that higher duties mean Washington is collecting billions of dollars from the Asian giant without costs being passed on to US consumers.
