It will exempt some American chips from retaliation tariffs

On April 11, the Chinese government announced that it would apply some 125% tariffs to the products imported from the US. This measure was the expected response after the government led by Donald Trump gradually increased taxes About Chinese imports until reaching 145%. The commercial war had just entered its cruel phase, but shortly after, on April 14, the US decided to give a provisional respite to The technology industry.

And it is that the Trump administration temporarily paralyzed tariffs linked to The import of semiconductorselectronic devices and some strategic components. Just a few hours ago the Xi Jinping government He has responded using the same US tone: exempting tariffs at least eight different categories of integrated circuits manufactured in the country governed by Donald Trump. Interestingly, memory chips are still in force.

China has chosen to reduce tension and protect its supply chain

The Chinese administration has taken approximately two weeks to approve this exemption from the moment it announced the implementation of the 125% tariffs to the products imported from the US, but has remedied it. Customs authorities have informed Chinese companies that tariffs that have paid between April 10 and 24 for semiconductors who are now exempt from taxes will be returned to them.

At the moment we do not know how long this measure will last, but in all likelihood its longevity will be linked to The decisions you will make during the next few weeks The US government. In fact, the latter has anticipated that within a period not exceeding two months will announce to which tariffs they will be subjected Imported chips.

In any case, this decision has two very beneficial consequences for China. On the one hand it relieves the pressure on their own economy by allowing their companies to import without additional taxes some critical integrated circuits that at the moment do not produce the manufacturers of local semiconductors.

In addition, at the current situation this strategy allows China to protect its own supply chain. If all the chips designed or manufactured in the US had a 125% tariff load the tension to which it would be subjected China’s supply chain would be hardly bearable.

All probability this would trigger a critical chip shortage that would degrade the competitiveness of Chinese companies. This measure of the Xi Jinping government is clearly a tactical adjustment. It maintains the pressure on some chips from the US, but, at the same time, it avoids shortage in its internal market for essential integrated circuits.

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