China announces new tariff exemptions for US chemical.

China announces new tariff exemptions for US chemical.

SINGAPORE/BEIJING: China on Thursday unveiled a collection of import tariff exemptions for six petroleum and chemical products a Phase 1 trade deal was announced by days after the world’s two largest economies.

Without providing a value for the imports, the exemptions will be for one year from 26 Dec, the Finance Ministry said. Duties enforced on US products would not be reimbursed, the ministry added.

Kelly Cui, principal analyst with consultancy Wood Mackenzie, said the exemptions on the chemical products would benefit companies like Dow Chemical Co, Exxon Mobil Corp and Chevron Phillips Chemical Co, which have since 2017 been adding shale-based ethylene production facilities and targeting China as the prime export market. Cui also pointed out that the products, LLDPE and metallocene HDPE, were grade materials used for packaging and pipes. China is the world’s biggest importer of polyethylene.

The data does not provide a breakdown for grades of each polymer. These imports had a total value of about $14 billion, according to Reuters calculations based on the cost for both of these products.

White oil imports from the US have been 3,490 tonnes or worth just $8.7 million during the same period, roughly 6% of China’s total imports.

China waived import tariffs for a few soybeans and pork imports from the United States on Dec. 6, until the two sides reached a Stage 1 trade deal to cancel tariffs which were intended to take effect on Dec. 15. China said launch the batch of waivers and it will continue to work on the product exemptions.

The Sino-US trade war has been a headache for international policymakers as it slowed economic growth and chilled business investment and confidence. US Trade Representative Robert Lighthizer last week confessed there stayed hard work in the next phase of negotiations.

He gave no specific timetable, but said US President Donald Trump didn’t need to wait until after the 2020 election to wrap up a more comprehensive agreement.

Add a Comment

Your email address will not be published. Required fields are marked *