China drops tariffs on US semiconductors, weighs more exemptions as countries attempt to navigate trade war: reports

China has quietly exempted some semiconductors from tariffs, and is considering more exclusions for certain US industries, as the world’s two largest economies attempt to navigate a trade war with potentially devastating effects, according to reports.Taxes on at least eight classifications of US microchips have been lowered to zero, a huge drop from China’s 125% retaliatory tariff on all other US goods, Caijing, a Chinese financial magazine, reported on Friday.Though the article was later deleted, two importers confirmed that certain semiconductors have been spared from the hefty duties, according to The Washington Post.Chinese officials are weighing further exemptions on medical equipment and some industrial chemicals like ethane, sources familiar with the matter told Bloomberg.The government is also considering removing the tariff on plane leases, sources said.Chinese airlines, like most other carriers around the world, do not own all of their planes.

Instead, they pay leases to third-party companies.China’s embassy in the US did not immediately respond to The Post’s request for comment.In the public eye, however, China has appeared resistant to de-escalating heightened trade tensions, claiming that trade talks with the US haven’t even started yet after Trump indicated that lower rates on the nation are in the works.The nation called for the US to revoke all “unilateral” tariffs.Later on Thursday, Trump said that the White House has been meeting with Chinese officials, claiming there had been a meeting that same morning.Shares in Asia soared and the yuan erased losses after news of the potential exemptions circulated.“It’s another step toward a de-escalation of the trade war,” Kok Hoong Wong, head of institutional equities sales trading at Maybank Securities Pte, told Bloomberg.While most believe it’s unlikely that US-China tensions will ease quickly, “it would appear the worst may truly be over,” he added.Neither Beijing nor the US wan...