China announces new tariff exemptions for U.S. chemical, oil products

[Tom Kirkman + 8,860]

Nice white flag you have there, China.  Waving a white flag isn't so hard after all, is it ...

China announces new tariff exemptions for U.S. chemical, oil products

China on Thursday unveiled a new list of import tariff exemptions for six chemical and oil products from the United States, days after the world's two largest economies announced a Phase 1 trade deal.

The exemptions will be for one year from Dec. 26, the Finance Ministry said, without providing a value for the imports excluded from duties.

Duties already imposed on U.S. products would not be refunded, the ministry added.

The tariff waivers will apply to four chemical products, such as metallocene high-density polyethylene (HDPE) and a special grade of linear low-density polyethylene (LLDPE), and refined oil products that include white oil and food-grade petroleum wax.

Kelly Cui, principal analyst with consultancy Wood Mackenzie, said the exemptions on the chemical products would benefit companies such as 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 listed products, metallocene HDPE and LLDPE, were high-end special grade plastic raw materials used for packaging and pipes. China is the world's largest importer of polyethylene.

"The exemptions could see China resume buying more HDPE and LLDPE from the U.S., reversing the trade flow, as the U.S. supplies have been diverted to Latin America and Europe while China has been importing mostly from the Middle East," said Cui.  ...

 

[frankfurter + 562]

hmmm, the white flag may not be by whom you think, and the long-term result may not be the victory you believe. this war has more than a few fronts.

 

[AcK + 50]

On 12/22/2019 at 6:37 PM, frankfurter said:

hmmm, the white flag may not be by whom you think, and the long-term result may not be the victory you believe. this war has more than a few fronts.

 

Although I agree we are in the first innings of a very long game. But you have to admit China has taken quite a softer position recently - no doubt also due to internal challenges (food inflation, rising credit defaults).

O/w you would recall them talking about getting ready for another Long March.