According to the data of the 3 customs agencies of Shenzhen, China unofficially quit of the 125 % tariffs imposed in consequence to US duties. The simplification included 8 categories of integrated circuits, excluding memory chips. Although the changes have not yet been announced publicly, they are already applied by local customs offices.
Refrain from the confrontational strategy
12 April more Beijing announced raising customs duties on all US goods to 125% – in consequence to Donald Trump's earlier decisions to rise US tariffs to 145%. For many months, the Chinese authorities publically declared their readiness to escalate the trade conflict. However, the current customs exceptions indicate that Beijing must change its approach to critical components which it is incapable to produce alone or to get from another markets.
The Critical Meaning of American Chips
Semiconductors are essential for all modern electronic devices, and their production requires advanced know-how and immense financial resources. In 2024, China imported semiconductors from the US with a full value of $11.7 billion. Despite advancement in the improvement of its own chip industry, the country inactive mostly relies on deliveries from the US, Taiwan, South Korea, Japan and the Netherlands.
Exemptions from duties only for logical chips (data processors) in which US producers specified as Intel, Texas Instruments and GlobalFoundries dominate. Memory chips, in which South Korean companies dominate, were not exempted.
Uncertain communication and political context
The Chinese authorities have not publically confirmed the decision to delete the duties, and the customs offices in Shenzhen and Zhongshan officially state that they do not have information on the matter. Meanwhile, local companies importing integrated circuits receive notifications of zero work rates at customs clearance.
Meanwhile, Donald Trump eases rhetoric towards Beijing and declares his readiness to negotiate. However, China powerfully denies that any customs discussions are presently being conducted, first demanding the full deletion of US tariffs.
