Gatestone Institute senior fellow Gordon Chang joins ‘Fox Report’ to break down China’s move to waive tariffs on certain U.S. goods and analyze the broader implications of the ongoing trade battle with the Trump administration.

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 that have been notified, in the clearest sign yet of Beijing's concerns about the trade war's fallout.

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