China will start imposing modified duties on a list of import and export items from next year, the country’s Ministry of Finance said last Friday.
According to an online statement from the ministry’s official website, import taxes on such products as dobby or jacquard looms, cathode materials for power batteries, raw materials for advanced medicine, and coconut coir will be lowered starting Jan 1, in order to promote imports of high-end equipment, key machine components and raw energy materials.
Export taxes on products like steel and chlorite will be eliminated, while those on commodities such as NPK, apatite, coal tar and wood chips will be reduced to some extent, the statement also showed.
To facilitate the development of the Belt and Road Initiative and the construction of free trade zones, China will also apply conventional tariff rates on products imported from 26 countries and regions in accordance with established trade agreements, resulting in lower tariffs with trade partners including ASEAN, Pakistan, Korea, Peru and Australia, etc, as well as unchanged tariff concession with Singapore, Chile and members of the Asia-Pacific Trade Agreement.
In addition, more products will be exempted from taxation under the Mainland and Hong Kong Closer Economic Partnership Arrangement, and the Economic Cooperation Framework Agreement between the Chinese mainland and Taiwan will continue to be effective.
China will also begin the third round of tariff cut on information technology products from July 1, 2018. The previous tariff cut for certain information technology products was carried out this year on July 1.
In fact, China has already remarkably lowered tariffs on a lot of consumer goods, including food, pharmaceuticals, garments and infant formula, among other, early this month. (See related article Business Opportunities from Consumption Upgrade in China from JumoreGlobal Insights)
It was reported that China will still adjust the number of items to be taxed and certain tariff rates in 2018.
The cutting or elimination of tariffs will substantially reduce trade costs of Chinese import and export enterprises to benefit their revenue growth and global competitiveness. For foreign enterprises engaging in cross-border trade with China, the further opening-up of the country’s economy also means numerous potential business opportunities.