China cuts tariffs on £57.8bn of US imports in trade truce

China has cut tariffs on 75 billion dollars (£57.8 billion) of US imports in a trade truce with Washington as Beijing struggles with a costly virus outbreak.

The cuts follow last month’s signing of a Phase 1 agreement towards ending a long-running tariff war over Beijing’s technology ambitions and trade surplus.

Both sides have made conciliatory gestures but the lingering dispute threatens to chill global economic growth.

The reductions follow American tariff cuts last month on Chinese goods.

There was no indication Beijing altered its own cuts in response to the rising cost of efforts to contain a coronavirus outbreak that have depressed business activity by closing factories, restaurants and shops.

“The next steps depend on the development of the Chinese-US economic and trade situation,” said a Ministry of Finance statement.

“We hope to work with the United States towards the final elimination of all tariff increases.”

The tax rate on some 916 items including soybeans, pork and fish was cut from 10% to 5%, effective on February 14, the ministry said.

The rate for 801 items including car parts will be cut from 5% to 2.5%.

Washington hiked tariffs on Chinese goods in 2018 in response to Beijing’s multibillion-dollar trade surplus and complaints it steals or pressures companies to hand over technology.

China retaliated by increasing duties on American goods.

Under the Phase 1 deal in October, Washington cancelled planned additional tariff hikes and Beijing committed to buying more US farm exports.

However, most tariff hikes imposed previously by both sides on billions of dollars of each other’s goods are still in place.

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