China quietly rolls back retaliatory tariffs on some US-made semiconductors, import agencies say

By John Liu and Nectar Gan, CNN, Apr.25: China appears to have quietly rolled back retaliatory tariffs of 125% on some semiconductors made in the US, according to details provided to CNN on Friday by three import agencies in the southern technology hub of Shenzhen.

The exemptions apply to integrated circuits, also known as microchips or semiconductors, according to the agencies. They found out about the exemptions, which have not been officially announced, late on Thursday.

On April 12, China raised its reciprocal tariffs to 125% for all goods originating from the United States, in response to US President Donald Trump’s move to hike levies on Chinese goods to a sky-high 145%.

For months, Beijing has been projecting an air of strength and confidence in its ability to withstand an escalating trade war with the US. But these exemptions suggest it needs to roll back some levies on crucial items that it cannot make at home or source elsewhere.

Chinese authorities have not confirmed the exemptions publicly. The General Administration of Customs and the customs offices in Shenzhen and Zongshan, both port cities in Guangdong province, said they were not aware of the exemptions.

CNN has reached out to China’s ministries of commerce and foreign affairs for comment.

Chen Shaoling, a manager at Zhengnenliang Supply Chain, an import agency, told CNN that she found out on Thursday that tariffs on eight kinds of integrated circuits, covering most semiconductors except for memory chips, had been waived to zero. The discovery was made during a routine custom clearance for her customers, she added.

“We only found out after we filed the declaration — without doing that, we wouldn’t have known,” Chen said. “The news is now spreading like wildfire.”

The local customs authority in Shenzhen appears to have notified some companies about the change.

“Fantastic news! We have received a new notice from China Customs, stating that eight tariff codes related to semiconductors/integrated circuits are now exempt from additional tariffs on US imports,” Shenzhen HJET Supply Chain wrote in a post on its official social media account Thursday.

“This means that imports originating from the United States under these codes will have their tariffs reduced to zero upon entry into China,” the post added.

A staff member at the company who picked up a call from CNN confirmed the new policy, saying her company was notified by local customs on Thursday.

Taihang Semiconductor, a company also based in Shenzhen that imports chips, told CNN it has received a notice from customs, though it declined to provide further details. “It’s definitely a good thing,” a staff member said when contacted by CNN.

Caijing, a Chinese business magazine, reported on the exemptions on Friday, citing multiple tech companies that import semiconductors, including one based in Shanghai. The report was removed roughly three hours after it was published.