China’s Ministry of Commerce has already responded to the recent U.S. tariff exemptions. They insist that these exemptions represent nothing more than a “small step” towards addressing the current, year-long trade conflict. The ministry urged U.S. President Donald Trump to fully eliminate the existing reciprocal tariffs, which include a staggering 145% duty on imports from China.
The U.S. Customs and Border Protection (CBP) has recently released new guidance on these exemptions. This guidance has a huge impact on overrarching, well-adopted technology like smartphones, computers, generation 5 semiconductors, solar cells and flash dram. The Trump administration appears to be playing a shrewd tactical game. This is occurring as other industries in the U.S. are putting increasing pressure behind.
Many observers in China interpret the exemptions as an indication that Trump is backing down on his previous hardline stance. Biden administration reports show that U.S. companies perceive it as difficult to replace Chinese supply chains. This challenge doesn’t help the already complicated trade relationship between the two countries. The Beijing Daily captured the mood of the people on this issue with their editorial about the tariff exemptions. They consider this as just another example of the U.S. government’s retreat.
“Public opinion widely views this as another retreat by the U.S. government on its tariff policies,” – The official Beijing Daily.
The tariff exemptions are temporary and the Commerce Ministry is monitoring their impact. They are doing so narrowly by targeting specific technology products. Indeed, this assessment speaks to China’s deepening worries about the impact of U.S. trade policies on the development of its technology sector.
Though those recent exemptions are a welcome relief, the 20% tariff on all Chinese products is still in place. In response, the Commerce Ministry called on the U.S. to listen to “sensible voices.” These voices include those from the international community, as well as the domestic stakeholders. It called for a substantial re-working of what it referred to as “errors” in trade policy.
“We urge the U.S. to heed the rational voices of the international community and domestic parties, take a big stride in correcting its mistakes, completely abolish the wrongful action of ‘reciprocal tariffs,’ and return to the correct path of resolving differences through equal dialogue based on mutual respect,” – China’s Commerce Ministry.
China’s own #Trumpadministrationfallsflat is trending on Weibo. It has since skyrocketed to No. 2 on the platform’s hot search list, reflecting the Chinese public’s keen interest in their country’s continuing and changing trade saga.