Description: China has allegedly waived 125% tariffs on ethane imports from the US as part of their strategy to alleviate the pressure from their trade war with the US on domestic companies. The unverified information comes after last week’s exemption on tariffs by China on imports from the US regarding various pharmaceutical, aerospace and semiconductor products. China is one of the largest importers of US gas products with around 492 thousand barrels per day, an amount projected to increase to 530 thousand barrels per day in 2025. Sources within the Chinese Ministry of Commerce and China’s customs services have neither confirmed nor denied the reports for the tariffs exemption.
Impact: China’s move to gradually exempt products from key industrial sectors indicates on either a prolonged trade war strategy aimed at protecting domestic manufacturers or a forced reaction which signals close dependence to the US trade potential. Even though the reports are unconfirmed by official state institutions, China has started to approach the trade war with increased proactivity as President Xi’s diplomatic tour for trade partners has given mixed signals so far. US media sources have recently speculated around possible negotiations signaling that the US aims at engaging in direct trade talks in the upcoming period. China has denounced the speculations regarding initial reproachment aiming at preserving their position of enduring the effects of the US tariffs. Direct trade negotiations are still highly improbable, although the scarcely available public sources information indicates that backchannel talks are already ongoing.