China's decision to extend the suspension of additional tariffs on goods from the United States is seen to be conducive to stabilizing bilateral trade ties, improving business confidence and providing greater predictability for companies navigating an uncertain global economic environment, analysts and business executives said.
The Customs Tariff Commission of the State Council has announced that China will extend the suspension of an additional 24 percent tariff on US imports for two months, starting on Tuesday afternoon, while maintaining a 10 percent additional tariff.
At the same time, the commission said China has noted repeated US statements about plans to replace tariffs imposed under the International Emergency Economic Powers Act, which were struck down by the US Supreme Court, with tariffs under Section 301 of the US Trade Act of 1974. China will closely monitor subsequent US measures and adjust its tariff countermeasures accordingly, it added.
Furthermore, the Ministry of Commerce announced on Monday that China will extend by another two months, starting on Tuesday, the suspension of measures against 11 US entities placed on its unreliable entity list in April 2025. Export restrictions on dual-use items involving 16 other US entities will remain suspended for two more months.
Chinese companies seeking to conduct business with the 11 entities can apply for approval, while exporters seeking to supply dual-use items to the 16 entities must obtain licenses from the ministry. Applications meeting regulatory requirements will be approved, said a ministry spokesperson.
Fu Suixin, an associate researcher at the Chinese Academy of Social Sciences' Institute of American Studies, said greater tariff and trade policy stability would allow businesses on both sides to make investment and sourcing decisions with more confidence, amid global supply chain adjustments, volatile energy costs and changing trade policies.
Zhao Minghao, a professor and deputy director of Fudan University's Center for American Studies in Shanghai, said amid persistent differences over trade and technology, sustained high-level dialogue and effective communication mechanisms could help China and the US manage disputes and maintain more predictable economic ties.
Despite persistent trade tensions, China-US trade in goods grew 4.1 percent year-on-year to 3.18 trillion yuan ($476.5 billion) in the first three quarters of 2026, data from the General Administration of Customs showed.
Wang Ruibin, chairman of Ningbo Sibranch Microelectronics Technology Co, a semiconductor silicon wafer processor based in Ningbo, Zhejiang province, said the duty adjustments and reciprocal tariff reductions can provide greater pricing certainty for businesses in both China and the US.
The company imported nearly 4 million yuan worth of silicon wafers in the first 10 months of 2026, up 30 percent year-on-year, according to Ningbo Customs.
"US-made products account for nearly 60 percent of our silicon wafer imports, and our finished products are mainly exported to the US, Vietnam and Malaysia," Wang said.
For US companies operating in China, bilateral economic ties extend well beyond tariffs.
Speaking at his company's booth at the 9th China International Import Expo, which runs through Tuesday in Shanghai, Jeffery Fay, senior vice-president of global product development and consumer strategy at US audio technology company Harman International, said China remains central to the group's global strategy, serving as both a major consumer market and a hub for technological innovation.
With 5,200 employees and four research and development centers in China, Harman benefits from the country's advanced manufacturing capabilities and extensive supply chain network, helping the company expand across the Asia-Pacific region and serve customers worldwide, said Fay, who has been based in Shenzhen, Guangdong province, for three years.
Christopher Eck, director of the Indiana Soybean Alliance, said that greater predictability in Chinese purchases is welcomed by US farmers grappling with rising production costs, offering an encouraging sign for bilateral agricultural trade.
zhongnan@chinadaily.com.cn
