By Dorcas Wong Last week, China’s central government announced […]MORE
China Cuts Import Tariffs on Select Goods in 2020, Rates Lower than MFN
In addition, China will lower tariffs on raw material for medication for conditions such as diabetes and asthma to reduce medicine costs and to promote the production of new medicines to better satisfy the needs of its aging population.
The country will also introduce or cut provisional import tax rates for commodities, such as ferroniobium (used as an additive for high strength low-alloy steel in oil and gas pipelines and trucks) as well as expanding the import of advanced technologies equipment and spare parts for the continued development of high-tech industries. To complement this, basic raw material, such as wood and paper products, will also be subject to lower or provisional import tax rates.
Lower tariffs viewed as a necessary import stimulus
China’s economy is expanding at its weakest rate in nearly 30 years and could face more downward pressure next year. As a response, the government is introducing new measures and tax cuts to keep growth within a reasonable range come 2020.
These provisional tariff reductions are good news for Chinese businesses, consumers, and foreign exporters alike. Chinese businesses are able to benefit from the lowered price of these products while Chinese consumers will be able to access these foreign specialty products.
More importantly, the tariff reductions facilitate the coordinated development of China’s trade environment at a broader level – supporting the qualitative development of the country’s free trade zones and the strengthening its developing Belt and Road Initiative trade networks.
Below is a table of some of the goods affected by these reduced tariffs.