(Yicai Global) March 23 -- Jiecang Linear Motion Technology's stock price surged against the sliding Chinese markets after the Chinese office and hospital furniture manufacturer said that it has averted President Donald Trump's import tax hikes while expecting to receive CNY90 million (USD12.7 million) in rebates.

Jiecang's shares [SHA: 603583] climbed 3.9 percent to CNY39.87 (USD5.60) this afternoon after touching CNY41.08 in the morning. The Shanghai Composite Index was 1.9 percent down.

The Office of the United States Trade Representative has notified the firm about a lowered tax rate for a period of nearly two years ending August 2020, the Zhejiang province-based company said in a statement yesterday. That should affect Jiecang's future performance positively, it added.

Jiecang was among the Chinese companies that were impacted when President Trump's administration announced in June 2018 that USD200 billion worth of Chinese goods will need to bear a 10 percent tariff increase, and lifted the rate to 25 percent in May 2019.

The supplier is hoping that its products qualify for further tariff exemptions after August, it added. In the first three quarters of 2019, Jiecang made CNY225 million (USD31.7 million) in net profit, according to its earlier earnings reports.

Editor: Emmi Laine