Duties are canceled for 696 goods that are imported into the Middle Kingdom from the United States
China will grant exemption from reciprocal duties imposed on 696 US goods. This is the most significant tariff cut to date, as Beijing seeks to fulfill its commitments under the temporary U.S. trade deal..
On February 14, the trade agreement between the two countries went into effect, and this is the third round of tariff breaks that China has granted for goods from the United States..
China has pledged to increase its purchases of goods and services from the United States by $ 200 billion over two years under the agreement and has already removed some additional duties on imports from the United States after the agreement was signed..
The list of goods subject to tariff exemptions includes major agricultural and energy products such as pork, beef, soybeans, liquefied natural gas and crude oil, which were subject to additional tariffs imposed during the escalation of the bilateral trade dispute..
The coronavirus epidemic that erupted late last year in China, however, has raised concerns about its ability to meet procurement targets. Authorities across the country have imposed severe travel and transportation restrictions to curb the spread of the virus, which has killed nearly 1,900 people and infected more than 70,000 in the country..
Efforts to contain the epidemic hit the manufacturing sector as many factories were completely closed or operated with drastically reduced staff. Chinese are not advised to leave their homes or visit public places, which also restricts consumption.
White House adviser Larry Kudlow said earlier that Chinese President Xi Jinping promised US President Donald Trump in a recent call that China will continue to meet its procurement targets in Phase I trade deals..
Beijing’s statement highlights that Chinese firms will apply for tariff breaks based on market conditions and commercial considerations..
Other products subject to additional trade duties include denatured ethanol, wheat, corn, and sorghum. Certain medical devices and metals, including copper ore and concentrates, copper scrap and aluminum scrap, are also subject to trade duty exemptions.
Pharmaceutical products such as recombinant human insulin and some antibiotics are also among the US products that are subject to tariff exemptions.
Companies can start filing on March 2, any incentives provided will be valid for one year.