China keeps penalties on USA pork, soy, eases some others

China’s Xi ‘Can’t Believe What Trump Says’ Regarding Trade War

China’s Xi ‘Can’t Believe What Trump Says’ Regarding Trade War

The measure will enter into force on September 17 and will be valid for one year - until September 16, 2020, BTA informs. -China relations, including trade, the chamber said in a statement.

"The exemption could be seen as a gesture of sincerity towards the U.S. ahead of negotiations in October but is probably more a means of supporting the economy", ING's China economist Iris Pang wrote in a note.

Donald Trump has long accused China of unfair trading practices and intellectual property theft, while in China, there is a perception that the U.S. is trying to stymie its growth.

Today's exemptions apply to the round of tariffs China imposed on USA goods starting last July in retaliation for higher US levies.

Beijing's earlier tariff hikes avoided processor chips and other US technology required by Chinese industry.

The products include whey and fishmeal used for animal nutrition, and some lubricants, Reuters said, citing a statement from the Chinese Treasury. That will be applied to the products subject to additional tariffs on US$60 billion of American goods. With more USA tariff increases on the way, China is unlikely to pare back its response by exempting soybeans and autos.

Top Chinese negotiators will travel to Washington for talks in the coming weeks, and lower-level officials will also hold discussions this month. "The time is now to strike a deal that addresses the U.S.' legitimate concerns about market access, forced technology transfer, subsidies and digital trade, while concurrently removing punitive and retaliatory tariffs".

In their latest escalation, Washington imposed 15% tariffs on $112 billion of Chinese imports on September 1 and is planning to hit another $160 billion December 15.

ING's Pang noted the United States had also exempted imports of 110 Chinese products from tariffs in July, including high-value products such as medical equipment and parts.

The South China Morning Post reported, citing an unidentified source, that China was expected to buy more agricultural products in hopes of a better trade deal with the United States.

Xi also had a telephone conference with Trump on June 18, according to the Chinese Foreign Ministry, and Xi said he hoped that "the USA side can treat Chinese firms in a fair manner".