China quietly protects US semiconductors amid rising trade war

Chinese President Xi Jinping

China has quietly waived punitive tariffs on some US-produced semiconductors, seeking to protect its key tech industry even as tensions with US President Donald Trump sharpen. Beijing has removed tariffs to zero for at least eight types of US microchips, deviating from the across-the-board 125 percent tariffs imposed on other American products, importers and customs data cited by Caijing said, the Washington Post reported.

Defiance and back-channel manoeuvring

As Beijing officially dismisses media reports of continued talks with the Trump administration, secretly it is selectively relaxing pressures to shield strategic sectors. Importers attested that exemptions exist, although officials have shied away from explicit statements. Analysts infer the exemptions are aimed at "irreplaceable" merchandise required to keep China's home-grown tech hopes afloat.

Strained relations and internal damage control

Trump's tariffs, presented in Beijing as economic siege, have encouraged China's leadership to double down on jobless funds and promise swift measures to stabilize growth. At the same time, President Xi Jinping is counting on nationalist sentiment and domestic industry solidarity to survive Trump, even if massive levies are threatening universal layoffs.

Strategic exemptions make vulnerabilities stand out

While trying to keep the pressure on the US in areas such as agriculture and aviation, Beijing is wary not to ruin its chip ambitions. Analysts explain that higher tariffs on key tech imports would sabotage China's strategic vision of becoming self-sufficient technologically, leading to calculated carve-outs.

No indication of a breakthrough

While some remarks by Trump were softer, China remains firm that diplomatic talks are not in progress. With each party doubting the other's credibility, expectations of a short-term resolution remain remote. Experts caution that selective tariff relief is a sign that China is determined to protect its industries while gearing up for a long-term economic standoff.

Trade war consequences deepen

Aside from semiconductors, tensions are mounting. Chinese airlines have already returned Boeing planes, imports of American farm products have been cut, and China has reduced exports of rare earth minerals that are vital to US production. Analysts warn that with no meaningful dialogue, the global economic repercussions will only continue to worsen.