China takes a step back in trade war with US: aphids partially on

The trade war between China and the United States seems to be going into a new chapter. For some American products, China has decided to make exceptions to the heavy import duties of 125%. With this Beijing tries to limit the economic damage of the conflict. In the meantime, the two countries are playing a game about whether or not there are conversations about a trading deal.

China asks companies for help

According to reports, including Reuters, the higher costs are increasingly starting to print on Chinese producers as a result of the high import rates. As a result, the Chinese government is considering releasing certain products from the serious taxes.

China has asked companies to inform which American goods they really need – products for which there is no alternative in other countries. Such products may then be exempt from the high rates.

The announcement of the exemptions had an immediate effect on the financial markets. The American dollar rose slightly and also the stock markets in Hong Kong and Japan closed higher. It is a new cautious step towards de-escalation of the trade struggle between the two largest economies in the world.

China is preparing for a long battle

Despite this step, according to reports, China is also preparing for a long -term battle. In a statement after the monthly meeting of the Politburo, the Communist Party emphasized that they want to support companies and employees who are affected by the Trade War.

China is working internally with economic challenges such as rising unemployment, deflation and a surplus of unsold export goods. Nevertheless, Beijing indicates that they are willing to sit out the fight if the US does not lower their rates.

But American President Donald Trump would not intend to reduce import rates on Chinese products unilaterally, his Finance Minister Scott Bessent said this week. The American import duties are even higher than that of China, namely 145%.

Welles-notes about negotiations

Investors hope that the United States and China will close a trading deal soon. Nevertheless, both countries continue to contradict each other about the progress of the conversations. President Trump has been claiming for weeks that negotiations have been going on and repeated today that he has been in contact with China “several times”. However, Beijing always denies that conversations are taking place. So it remains a classic case of word against word.