China's Tariff Exemption on 81 U.S. Products Including Electric Vehicle Batteries Extended for 7 Months

[Asia Economy Reporter Park Byung-hee] Chinese media including the People's Daily reported on the 17th that the Chinese government will extend the tariff exemption on 81 items from the US and Canada, including electric vehicle batteries and shrimp, for seven months.

The Tariff Commission of the State Council of China announced the day before that it will extend the tariff exemption regulation on 81 items from the US and Canada, which was set to expire on the 16th, until April 16 next year. These 81 items are exempt from China's retaliatory tariffs imposed in response to the high tariffs on China under Section 301 of the US Trade Act.

The US, during the Trump administration in 2017, initiated an investigation under Section 301 of the Trade Act, citing issues such as China's intellectual property theft and forced technology transfer, and in March 2019 signed an executive order imposing high tariffs on China, which were implemented in July of the same year. China responded with retaliatory tariffs, triggering the so-called 'US-China trade war.'

China has been suspending tariffs on 81 US items as part of the Phase One trade agreement reached in January last year to temporarily ease the US-China trade war.