China exempts additional American goods

Types of ores, precious metals, semiconductor components ... are in the list of China exempted from tax for the US from May 19 until mid-2021.

China has announced a new list of 79 US products eligible for import duty exemption in the context of Beijing increasing purchases of goods from the United States. Products exempted from this round include ores, precious metals, semiconductor components, medical disinfectants, chemicals and petrochemicals, etc.

China's Ministry of Finance said the tax exemption will take effect from May 19 and expires on May 18, 2021. However, within 6 months from May 19, importers must apply to China Customs to be considered for tax exemption.

This is Beijing's second round of tariff reduction on US goods. The first time was in September last year, China exempted mainly agricultural products such as pork, soybeans, as well as petrochemical products.

Beijing's decision to exempt more tax was made at a time when tensions escalated again in US-China relations. Last week, President Trump threatened to end the deal if China did not fulfill its purchase commitment.

Meanwhile, China's Global Times also said earlier this week that some government advisers had asked Beijing to nullify the deal and negotiate a more favorable deal for Beijing.

Due to Covid-19, the supply chains of both countries were seriously affected, bilateral trade turnover was narrowed in the first 4 months. In April alone, the volume of Chinese goods imported from the US decreased by 11.1%. Experts estimate that China must double imports of US goods to meet its goals.

Last week, leading US and Chinese trade negotiators spoke and discussed the implementation of the first phase agreement. This is the first time the two sides have had a talk since the first phase agreement was signed earlier this year.