The two lists will be effective for one year from September 17, 2019 to September 16, 2020.
"The exemption could be seen as a gesture of sincerity towards the USA ahead of negotiations in October but is probably more a means of supporting the economy", ING's China economist Iris Pang wrote in a note.
The report also found China's ongoing economic slowdown - which predates the trade war - remains the top overall concern of USA companies.
Significant US exports to China, like pork, soybeans and American-made cars, are among the goods that will still be hit by the hefty taxes.
However, Beijing did not spare high-profile U.S. products like soybeans and pork.
China has raised duties on about $120 billion of USA imports, economists estimate.
The exemptions will apply to USA goods including some anti-cancer drugs and lubricants, as well as the animal feed ingredients whey and fish meal, the Ministry of Finance said in a statement on its website on Wednesday. That will be applied to the products subject to additional tariffs on US$60 billion of American goods.
Chinese imports of US goods tumbled 22.5% in August from a year earlier and exports to the United States, China's biggest foreign market, fell 16%.
Last week, the United States slapped China with the first stage of a new round of tariffs that will see almost all Chinese imports taxed.
Top Chinese negotiators will travel to Washington for talks in the coming weeks, and lower-level officials will also hold discussions this month.
Some U.S. tariffs across approximately $263 billion worth of annual imports from China - originally planned for a rate of 10% - took effect at a rate of 15% on September 1, after USTR announced increases.
Although Abe told Xi that Trump trusts the Chinese president, Xi continued to air his grievances about his US counterpart, the diplomatic source told Kyodo News.
Next, the commission will continue to work on the exemption process and release subsequent lists in due course, according to the statement.
China has raised duties on about $120 billion of US products, economists estimate.
Earlier on Wednesday, a survey by a prominent American business association showed the trade war is souring the profit and investment outlook for US companies operating in the world's second-biggest economy.