China’s President Xi Jinping greets people on his arrival in Phnom Penh last week
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China has granted some tariff exemptions on American imports and is considering lifting other duties, according to the local US business lobby group, in a possible sign of relief for companies hit by Donald Trump’s trade war.

China’s ministry of commerce is reviewing sectors affected by Beijing’s 125 per cent tariffs on US goods, Michael Hart, American Chamber of Commerce in China president, said on Friday.

Hart said that healthcare imports to China were under review for possible tariff exemptions.

Companies in sectors including aviation and industrial chemicals said that some of their products had already been granted a reprieve, while local media reported that some semiconductors had been spared tariffs.

Hart added that the US commerce department was also reviewing the impact of the duties on companies. 

“It’s good to see that both sides are reviewing the tariffs and it looks like they’re starting to produce lists of exclusions for specific categories,” Hart said. 

China’s commerce ministry did not respond to a request for comment on the tariff exemptions. China’s foreign ministry said it was not familiar with any exemptions and reiterated that there had been no direct talks with the US on reducing levies.

US President Donald Trump has already excluded high-value Chinese goods such as smartphones and electronics from his tariffs of up to 145 per cent, though he later clarified that those exemptions would be temporary.

Beijing’s retaliatory levies of 125 per cent have hit American agricultural goods and energy.

Hart said China’s commerce ministry had met representatives from the chamber and its member companies to determine the fallout from the tit-for-tat tariffs.

“Our member companies have reported that even within the last week, they had a few shipments that were imported that did not have tariffs levied on them,” he said. 

“So I think for the critical sectors, we may be able to assume that that’s already in place, but I don’t think it’s a specific policy. I think right now it’s more of a one-off.”

French aerospace engine maker Safran also said on Friday that China had granted some import tariff exemptions. Chief executive Olivier Andriès said on an earnings call that “China decided to exempt from tax any deliveries of engines, nacelles, landing gear or parts”.

Hart also identified pharmaceuticals and medical devices as industries that were potentially vulnerable, given their high levels of imports.

If the tariffs remained in place at the current levels, he said, “it would be hard to imagine that we wouldn’t see some companies close and leave”.

The efforts by both sides to mitigate the worst effects of a looming trade war come as Trump has insisted — despite Chinese denials — that negotiations are under way and the levies will soon be reduced.

China’s commerce ministry on Thursday called on Washington to “cancel all unilateral tariff measures” if it wanted to begin trade talks.

Economists have warned that bilateral trade in some sectors is at risk of coming to a halt, with the current level of tariffs making US imports unviable for many Chinese businesses. 

Chinese President Xi Jinping said on Friday Beijing had to “fully prepare emergency plans” to boost the economy at a meeting of the Communist party’s 24-member politburo on Friday.

Xi called on the government to increase support to businesses, accelerate efforts to boost consumption and more quickly resolve a years-long downturn in the property sector.

Officials should “co-ordinate domestic economic work and international economic and trade struggles”, he said.

Additional reporting by Ian Johnston in Paris

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