China’s top leaders have pledged to step up support for the economy stricken by a high-stakes trade war with the United States as Beijing dismisses President Donald Trump’s claims of being engaged in tariffs negotiations.

Chinese Foreign Ministry spokesperson Guo Jiakun said on Friday that the two nations were not engaged in formal talks on the trade war triggered by US tariffs earlier this month.

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US duties on Chinese goods now stand at 145 percent, while China’s retaliatory levies on US imports have reached 125 percent.

China insists the US must first lift all “unilateral” tariffs to resolve the trade standoff.

Supporting economy

Meanwhile, China’s top policymakers, including President Xi Jinping, convened a meeting on Friday, emphasising support for businesses and workers facing “external shocks”, state news agency Xinhua reported.

They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices”, it said.

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The readout of the meeting “shows the government is ready to launch new policies when the economy is affected by the external shock”, Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, wrote in a note.

However, Zhang noted “it seems Beijing is not in a rush to launch a large stimulus at this stage”.

“It takes time to monitor and evaluate the timing and the size of the trade shock,” he added.

The Reuters news agency reported that China is evaluating exemptions for select US imports, although Beijing has not made any public statement on the issue.

Businesses have been asked to identify essential goods requiring tariff relief, though no official list has been released, the report said.

Already exempted

A leaked document circulating online suggested 131 product categories – including pharmaceuticals and aerospace components – could be exempted.

The European Union Chamber of Commerce in China confirmed it had raised the issue with authorities, noting that many firms rely on critical US imports.

Similarly, the American Chamber of Commerce stated some pharmaceutical companies had already received exemptions for specific drugs.

French aerospace firm Safran also reported receiving exemptions for certain aircraft parts. Analysts suggest these moves could ease costs for Chinese firms and reduce pressure on US exporters.

The Commerce Ministry has yet to comment publicly on the exemptions, redirecting inquiries to “relevant authorities”.

Meanwhile, global markets remain watchful for signs of a potential de-escalation from the both the US and China.

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