In this file:
· China keeps penalties on US pork, soy, eases some others
· China just removed tariffs from some American exports — but ranchers are still going to feel the pain as farm produce still faces levies
China keeps penalties on US pork, soy, eases some others
By Joe McDonald, Associated Press
via News 12 New Jersey - Sep 11, 2019
BEIJING (AP) - China on Wednesday announced it will exempt American industrial grease and some other imports from tariff hikes in a trade war with Washington but kept in place penalties on soybeans and other major U.S. exports ahead of negotiations next month.
The move applies to raw materials for farmers and factories, suggesting Beijing wants to limit damage to its slowing economy from the fight with President Donald Trump over trade and technology.
It adds to indications that both sides might be settling in for extended conflict even as they prepare for talks in Washington aimed at ending the dispute that threatens global economic growth.
A list of 16 items including lubricants, fish meal for animal feed and some other chemicals will be exempt from penalties of up to 25% imposed in response to Trump's tariff hikes on Chinese products, the Ministry of Finance said. Punitive duties on soybeans, the biggest U.S. export to China, and thousands of other items were left unchanged.
"The exemption could be seen as a gesture of sincerity towards the U.S. ahead of negotiations in October but is probably more a means of supporting the economy," Iris Pang of ING said in a report.
Word that talks are going ahead has helped calm jittery financial markets. But there has been no sign of progress.
The two governments "are unlikely to reach a deal this year," said Pang.
Beijing's earlier tariff hikes avoided processor chips and other U.S. technology required by Chinese industry.
Chinese leaders are resisting U.S. pressure to roll back plans for government-led creation of global competitors in robotics and other industries.
Washington, Europe, Japan and other trading partners say those plans violate China's market-opening commitments and are based on stealing or pressuring companies to hand over technology.
Washington and Beijing have raised tariffs on billions of dollars of each other's products. That has battered farmers and manufacturers on both sides and fueled fears a global economy that already was showing signs of a slowdown might tip into recession.
Trump has imposed or announced penalties on about $550 billion of Chinese products, or almost everything the United States buys from China. Tariffs of 25% imposed previously on $250 billion of Chinese goods are due to rise to 30% on Oct. 1.
China has raised duties on about $120 billion of U.S. products, economists estimate. Some have been hit with increases more than once, while about $50 billion of U.S. goods is unaffected, possibly to avoid disrupting Chinese industries.
In their latest escalation, Washington imposed 15% tariffs on $112 billion of Chinese products on Sept. 1 and is planning to hit another $160 billion Dec. 15. Beijing responded by imposing duties of 10% and 5% on a range of American goods.
Products covered by Wednesday's exemptions include lubricants, insecticides and whey and fish meal for animal feed.
Chinese imports of U.S. goods tumbled 22.5% in August from a year earlier and exports to the United States, China's biggest foreign market, fell 16%.
Beijing has agreed to narrow its politically sensitive trade surplus with the United States but is reluctant to give up development strategies it sees as a path to prosperity and global influence…
China just removed tariffs from some American exports — but ranchers are still going to feel the pain as farm produce still faces levies
· China's Foreign Ministry announced on Wednesday morning that it would be removing tariffs from certain American exports.
· The total number currently is 16, including some foodstuffs and lubricants, according to Bloomberg.
· But American farmers will still feel the strain of the trade war as "big ticket" agricultural goods like soybeans and pork haven't been included.
· Experts are also warning not to look too much into the news, saying that the tariff exemption could be more to benefit China domestically than to offer an olive branch ahead of trade negotiations.
· Hong Kong's Hang Seng index rose 1.6% on the news.
Yusuf Khan, Business Insider
Sep. 11, 2019
China on Wednesday morning announced it would remove tariffs from 16 types of American exports ahead of talks between the two superpowers next month.
Starting September 17, Bloomberg, citing a report in Chinese from the the state news agency Xinhuanet, said the country will suspend tariffs for a year on cancer drugs, some food, lubricants, and chemicals.
The US and China are currently scheduled to hold trade talks next month, in the hope that negotiations will go much better than they did in July.
The Chinese Foreign Ministry also said that further exemptions will be announced in due course, Bloomberg reported.
Despite the tariff exemption, America's farmers are still going to feel the squeeze of the trade war, which has already seen the number of farming bankruptcies rise in the last year, as agricultural goods such as soybeans and pork are still facing the high levies.
Julian Evans-Pritchard, senior China economist at Capital Economics, said that these tariff exemptions shouldn't be looked at with a great deal of hope in terms of softening the conflict.
"Looking at what goods have been exempted, it could more be the case that removing these tariffs would benefit China domestically, as there are no big-ticket agricultural goods on the list," said Evans-Pritchard to Markets Insider in a call.
"In terms of the trade war, it won't meaningfully alter negotiations as if you look at the last round of talks they fell apart quite quickly over basic things like US agricultural exports, let alone the more complex stuff like intellectual property ownership," he added...
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