China exempts 16 types of U.S. goods from additional tariffs


China on Thursday welcomed US President Donald Trump's "goodwill" gesture to postpone a planned tariff hike on Chinese products, as the two countries warmed up to each other ahead of the next month's talks to end the bruising trade war. S&P 500 (SPX) futures were up 0.5% while Nasdaq (COMP)futures increased 0.7%.

But the standoff is a very close second, and more than half of companies surveyed said they were delaying or reducing further investment in China as a direct result of the tit-for-tat tariffs.

The data does not include recent and upcoming tariff increases on almost $300 billion in additional imports.

The long-running trade war between China and the United States has seen them swap tariffs on goods worth hundreds of billions of dollars.

Among the 16 US-made products under exemptions are lubricants, fish meal and whey for animal feed and some anti-cancer drugs, the Chinese Ministry of Finance said.

China has released a list of 16 United States imports that will be exempted from tariffs in the ongoing trade war between the world's two largest economies.

The negotiations in early October would be the first since talks broke down in May.

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His announcement was greeted with applause from all sides of the legislature, and a standing ovation from opposition benches. Late into the night, MPs also burst into song on the Commons benches, singing traditional Welsh and Scottish songs.

China has imposed several rounds of duties on U.S. goods in retaliation against U.S. Section 301 tariffs, beginning past year in July and August with a 25% levy on about $50 billion of U.S. imports.

The exemption will take effect on September 17 and be valid for a year through to September 16, 2020, it said.

"These adjustments signal that China is more willing to make progress in the October trade talks, likely toward striking a "narrow" agreement that involves China buying more U.S. goods in exchange for the USA suspending further tariff hikes", Barclays analysts said in a research note.

In July, the USA exempted 110 Chinese-made products from tariffs.

Trump has long accused China of intellectual property theft and manipulating its currency to make its goods cheaper than American products on the world market.

Senior White House adviser Peter Navarro this week urged investors, businesses and the public to be patient about the trade dispute.