China grants some exemptions from US tariffs to limit trade war pain ...Middle East

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The dispensation is the latest sign that the world's two largest economies were prepared to rein in their trade war, assuaging concerns about the impact of the tariffs.

A Ministry of Commerce taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, according to a person with knowledge of that outreach.

Some companies represented by the U.S. business group have reported that they had imported goods in the past week without the new tariffs being applied, Hart said.

China's Commerce Ministry said on Thursday it had held a meeting with more than 80 foreign companies and business chambers in China to discuss the impact of U.S. tariffs on investment and the operation of foreign firms in the country.

The European Union Chamber of Commerce in China also said it had raised the issue of tariff exemptions with the commerce ministry and was awaiting a response.

A list of 131 categories of products said to be under consideration for tariff exemptions was circulating on Chinese social media platforms and among businesses and trade groups on Friday. Reuters could not verify the list, which included items ranging from vaccines and chemicals to jet engines.

China's customs agency and Ministry of Commerce did not reply to requests for comment.

and already offered tariff exemptions

But China's economy headed into the trade war with rising unemployment, deflationary pressures and heightened concern that a mounting backlog of unsold exports could drive domestic prices even lower.

Big pharmaceutical companies including AstraZeneca and GSK have at least one manufacturing site in the U.S. for drugs sold in China, according to Chinese government data.

Major ethane processors have already sought tariff waivers from Beijing because the U.S. is the only supplier.

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