Chinese Vice Premier Liu He and US President Donald Trump show the signed China-US phase-one economic and trade agreement during a ceremony at the East Room of the White House in Washington D.C. on January 15. Photo: Xinhua

China on Tuesday announced that a new batch of imported products from the US will be excluded from punitive tariffs. The move came just days after the US released a tariff exemption list for imported products from China.

Products on the list - 79 items including rare-earth ore, gold ore and medical disinfectant - will no longer be subject to additional tariffs from May 19, 2020 to May 18, 2021, read a statement from the Customs Tariff Commission of the State Council, China's cabinet.

High-technology products like heater resistors and radar equipment for navigation were also included on the exemption list.

Imports from the US previously faced additional tariffs in retaliation for the US' Section 301 investigation covering Chinese imports.

Tariff exemptions on both sides, though not part of the phase one trade deal, were coordinated moves aimed at easing pressure on specific industries and companies in both countries, which have an interdependent trade relationship, experts said.

The latest exemptions also pave the way for higher mutual imports, they said.

On May 8, the Office of the United States Trade Representative (USTR) announced several new tariff exclusions for imported products from China, including medical items such as tumblers and disposable graduated liners for pitchers, and disposable plastic identification wristbands. 

China released its first list of goods that were exempted from the second round of additional tariffs in February. Products on the list included high-tech medical appliances such as gene-sequencing machines and aircraft autopilot system parts.

The bilateral tariff exclusions come as the world's two largest economies have been pushing forward the implementation of the phase one trade deal despite the spreading COVID-19 pandemic. 

"The China-US phase one trade deal benefits China and the US, as well as the world. Both China and the US should uphold the principles of equality and mutual respect and jointly implement the agreement," Chinese Foreign Ministry spokesman Zhao Lijian told a regular press briefing on Thursday.

Gao Lingyun, an expert at the Chinese Academy of Social Sciences in Beijing, who follows the trade talks closely, told the Global Times that both China and US may face difficulties carrying out the trade deal because of the pandemic. China may have delayed purchases of some US goods in the first quarter, while the US' ability to supply products to China has been constrained by the virus.

"But the two have to show each other understanding to further implement such a mutually beneficial trade deal," Gao said.

The expert noted that the key in pushing forward the hard-won trade pact is to "meet each other halfway and flexibly carry out the deal." For instance, Gao said that on China's side, "we can purchase some US products that it can't produce domestically but are needed by China, even though they are not included on the purchase list.

"Based on the changing situation, we can revise purchase categories and procedures to achieve the final purchase goal," said Gao.

China's Vice Premier Liu He was invited to talk with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin by phone on Friday. The two sides vowed to "create favorable conditions" for the implementation of the phase one trade deal.

Global Times