China and US have been at loggerheads since April 2 when Donald Trump announced a 34 per cent retaliatory tariff on Beijing. A trade war followed, and now US goods imported to China face 125 per cent taxation,

President Trump vowed his administration will reach a "fair deal" with China on trade as he floats substantially reducing tariffs on Beijing.

China is not negotiating with the Trump administration over tariffs, Beijing declared, despite the White House saying it was "setting the stage" for a deal.

An American business group said that Chinese officials had been surveying companies about American products that are crucial to their supply chains.

China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified, in the clearest sign yet of Beijing's concerns about the trade war's economic fallout.

Levies on certain U.S.-made microchips have been dropped, importers say. Meanwhile, China has denied President Trump’s claims that talks to reduce tariffs are happening.