China weighs tariff exemptions on certain American imports

The Chinese government is planning to exclude the opportunity to exclude certain essential products from its 125% reprisal prices on American products, said the head of an American business group in China.

Managers of the Chinese Ministry of Commerce could interrupt companies in China to identify imports from the United States that are crucial to provide channels and vulnerable to new Chinese trade barriers, Michael Hart, president of the American Chamber of Commerce in China, during an event in Beijing on Friday.

“There are companies that have said that if a long -term tariff war continued, their business model would not work in China and we would see them going out,” said Hart. “We have shared this with the Chinese government because they are of course trying to promote foreign direct investments.”

Vital drugs and other health products were one of the clearest concerns, said Hart.

The markets in Asia and Europe increased on Friday as investors were looking for signs that trade tensions between the two largest economies in the world began to facilitate ease.

Trade tensions pose a major challenge for China’s economic growth, which has been fueled by exports. President Trump increased the prices this month to 145% for more than half of China exports to the United States.