Introduction

China is quietly removing steep tariffs on select US semiconductor, signaling a subtle but important shift as Beijing struggles to protect its vital tech industry amid imports a deepening trade war with Washington.

According to three import agencies in Shenzhen, China has rolled back the 125% retaliatory tariffs on certain integrated circuits, or microchips, made in the United States. The exemptions, discovered during routine customs checks on Thursday, have not been formally announced by Chinese authorities.

The move highlights China’s ongoing reliance on critical US-made chips imports despite years of efforts to build a self-sufficient semiconductor supply chain.

https://www.yolegroup.com/product/report/overview-of-the-semiconductor-devices-industry-h1-2025

Quick Overview:

Tariffs Dropped: China quietly exempted eight categories of US semiconductors from its 125% retaliatory tariffs.

Strategic Move: The rollback aims to ease pressure on China’s tech sector, heavily dependent on imported chips.

Scope of Exemptions: Exemptions apply mainly to logic chips, not memory chips dominated by Korean companies.

Winners: US firms like Intel, Texas Instruments, and GlobalFoundries could benefit from renewed Chinese orders.

Trade Tensions Persist: Despite small tariff relaxations, broader US-China negotiations remain stalled.

China Eases Tariffs Amid Semiconductor Struggles

On April 12, Beijing hiked tariffs to 125% on all US-origin goods, retaliating against US President Donald Trump’s move to impose a record 145% tariff on Chinese semiconductor imports.

Now, less than two weeks later, China appears to be quietly softening its stance — at least for strategic sectors it can’t easily replace.

Integrated circuits, better known as semiconductors, are critical for nearly every modern electronic device.

Yet, despite pouring billions into domestic chip projects, China still depends heavily on imported chips and advanced manufacturing equipment from the US, Taiwan, South Korea, Japan, and the Netherlands.

In 2024 alone, China imported $11.7 billion worth of semiconductors from the United States, according to Chinese customs data.

“China does not have autonomy in chips,” said Duncan Clark, chairman of tech advisory firm BDA. “It has ambition for that. But basically, it’s going to be a while before it can be fully autonomous.”

techovedas.com/125-tariffs-china-hits-back-with-on-u-s-goods-after-trump-escalates-trade-war

Who Benefits from the Tariff Rollbacks?

The tariff exemptions could provide immediate relief for American chipmakers. Companies such as Intel, Texas Instruments, and GlobalFoundries were set to suffer under China’s 125% tariffs but may now continue shipments with lower risk.

Analysts note the rollback focuses on “logic chips” — processors that handle data flows — a market where American firms dominate. Notably, memory chips, where South Korea’s Samsung and SK Hynix lead, remain excluded from exemptions.

Ray Wang, a Washington-based analyst on US-China tech competition, said, “This benefits US semiconductor firms significantly, especially those already feeling the pressure from broader export restrictions.”

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Behind-the-Scenes Discovery

News of the exemptions broke quietly. Chinese customs offices did not publicly announce the change. Instead, importers like Zhengnenliang Supply Chain and Shenzhen HJET Supply Chain found out during routine declarations at ports in Shenzhen and Zhongshan.

“We only found out after we filed the declaration,” said Chen Shaoling, a supply chain manager. “The news is now spreading like wildfire.”

A business magazine in China, Caijing, briefly reported the story, citing Shanghai-based tech firms — but the article was mysteriously deleted within three hours.

Even China’s Foreign Ministry said it was unaware of any tariff change when asked during a press briefing on Friday. CNN reached out to the Chinese Commerce Ministry but did not receive confirmation.

/techovedas.com/made-in-america-why-u-s-manufacturing-still-cant-break-free-from-china

Expanding Exemptions to Other Critical Sectors

China’s selective tariff rollback extends beyond semiconductors. Olivier Andries, CEO of French aerospace giant Safran, revealed that China also dropped retaliatory tariffs on aviation parts like engines, nacelles, and landing gears.

Safran plays a key role in China’s aviation ambitions, providing key systems for the C919, China’s first domestically built passenger jet.

Reuters also reported that Chinese authorities are urging companies to submit lists of other US-made goods that could be eligible for tariff exemptions — a sign that Beijing is looking for ways to limit damage to essential industries while maintaining overall pressure on Washington.

techovedas.com/made-in-america-why-u-s-manufacturing-still-cant-break-free-from-china

Trade Talks Still Frozen Despite Olive Branches

The easing of semiconductor tariffs comes at a tense moment. Earlier this month, Trump exempted electronics like smartphones and laptops from his new tariffs to shield major US companies like Apple, which manufacture most of their products in China.

Trump has also suggested in recent days that tariffs on Chinese goods could “come down substantially” if Beijing agrees to negotiations.

Yet China’s leaders remain unmoved.

“There have been no negotiations between China and the United States on the issue of tariffs,” said Guo Jiakun, spokesperson for China’s Foreign Ministry. “The US should not mislead the public.”

While Beijing’s small concessions on semiconductors and aviation parts hint at a strategic recalibration, the broader US-China tariff war shows no signs of ending soon.

techovedas.com/upto-100-us-hikes-tariffs-on-evs-semiconductors-from-china-amidst-upcoming-elections/

Conclusion

China’s quiet rollback of tariffs on critical US semiconductor imports reveals an uncomfortable truth: despite years of investment and policy pushes, Beijing’s tech sector still cannot fully cut its dependency on the West.

While short-term exemptions may soften the immediate impact on Chinese firms, the long-term tech rivalry between the world’s two largest economies is only intensifying.

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