China has started exempting certain U.S. goods from its steep 125% tariffs, aiming to soften the economic damage from the ongoing trade war. The Chinese government is also asking local companies to list essential U.S. imports that cannot be sourced elsewhere, signaling a willingness to reduce trade tensions. This move comes after Washington’s recent efforts to calm relations, boosting global market confidence. Stocks in Hong Kong and Japan rose slightly, and the U.S. dollar gained. Business experts say the step could help lower conflict levels, though both sides still hesitate to make the first move toward a formal deal. Meanwhile, China’s Ministry of Commerce is working with over 80 foreign firms to identify products eligible for exemptions. Some pharmaceutical items and aerospace parts have already received tariff relief, offering hope to industries that rely on American goods. Still, China’s broader economic challenges remain. Rising unemployment and export backlogs continue to pressure prices at home. Experts believe exemptions will help, but warn they are only a small part of a long negotiation process.