Beijing has dismissed President Donald Trump’s claim that he is engaged in tariff negotiations.
China’s top leader has pledged to strengthen support for the high-stakes trade war with the United States as he dismissed President Donald Trump’s claim that Beijing was engaged in tariff negotiations.
Guo Zi-Kung, a spokesman for China’s Ministry of Foreign Affairs, said on Friday that the two countries were not engaged in formal consultations on the trade war caused by US tariffs earlier this month.
Currently, the US duties on Chinese goods reach 145%, while China’s retaliatory tax on US imports reaches 125%.
China argues that the US must first lift all “unilateral” tariffs to resolve trade conflicts.
Support the economy
Meanwhile, top Chinese policymakers, including President Xi Jinping, convened a meeting on Friday, highlighting support for businesses and workers facing “outside shocks,” state news agency newspaper reported.
They also said they would “work with the international community to actively maintain multilateralism and oppose unilateral bullying practices.”
The meeting reads “indicate that the government is ready to launch new policies when the government is affected by external shocks,” wrote Zhiwei Zhang, PinPoint economist at Asset Management, in a memo.
However, Chang said, “It appears Beijing is not in a hurry to start a big stimulus at this stage.”
“It takes time to monitor and evaluate the timing and size of a trade shock,” he added.
Reuters news agency reported that China is assessing the exemption from selected US imports, but Beijing has not issued an official statement on the issue.
The report says businesses are being asked to identify important products that require customs relief, but no official listings have been released.
Already exempt
Leaked documents circulating online suggest that 131 product categories can be exempted, including pharmaceuticals and aerospace components.
China’s European Union Chamber of Commerce has confirmed that it raised issues with authorities, noting that many companies rely on important US imports.
Similarly, the US Chamber of Commerce said some pharmaceutical companies have already received certain drug exemptions.
French aerospace company Safran also reported that it had received exemptions for certain aircraft parts. Analysts suggest that these moves can ease costs for Chinese companies and reduce pressure on US exporters.
The Commerce Department has not yet publicly commented on the exemption and has redirected inquiries to “related authorities.”
Meanwhile, global markets are paying attention to potential signs of de-escalation from both the US and China.