China is known to have exempted an additional 125% tariff on ethane, following the exemption for American semiconductors.

Illustration of the Chinese flag. /Courtesy of Reuters

On the 30th (local time), Reuters reported that Chinese authorities recently exempted tariffs on American ethane, and there was no official announcement from the Chinese authorities regarding this. According to Reuters, citing two anonymous sources, the tariff exemption on ethane, a raw material for petrochemicals, is expected to alleviate the burden on Chinese corporations.

According to the U.S. Energy Information Administration (EIA), China imports about half of the ethane exported by the United States. In particular, China imported an average of 492,000 barrels per day last year, the highest ever.

Earlier, there were reports from foreign media that Chinese authorities exempted tariffs on American semiconductors and some pharmaceuticals. At that time, there was also no official announcement from the Chinese authorities, and it was reported that the tax exemption was implemented by notifying related companies at trade customs.