Tar­iffs re­duced to spur con­sump­tion

China Daily (Canada) - - FRONT PAGE -

Tar­iffs on im­ported con­sumer goods will be cut in ar­eas of China by the end of June to fuel do­mes­tic con­sump­tion, sta­bi­lize eco­nomic growth and re­duce the out­flow of spend­ing by Chi­nese tourists.

An ex­ec­u­tive meet­ing of the State Coun­cil, presided over by Pre­mier Li Ke­qiang, de­cided to in­crease im­ports of over­seas prod­ucts fa­vored by Chi­nese con­sumers to woo those whose shop­ping lists dur­ing over­seas travel have ex­panded from luxury brands to daily con­sumer goods.

More duty-free stores will open at Chi­nese bor­ders, with a higher pur­chas­ing cap for each in­di­vid­ual tourist and more cat­e­gories of prod­ucts. Eas­ier tax re­fund pro­ce­dures will be pro­moted, ac­com­pa­nied by re­in­forced ef­forts in cus­toms clear­ing checks to curb smug­gling, the meet­ing de­cided.

Chi­nese tourists spend an av­er­age of about 12,000 yuan ($1,934) on tours and 7,000 yuan on shop­ping, ac­cord­ing to the China Na­tional Tourism Ad­min­is­tra­tion. But more Chi­nese are will­ing to travel over­seas, with shop­ping high on their agen­das, driven by a stronger yuan, fa­vor­able visa poli­cies and grow­ing wealth.

A re­cent HSBC re­port shows that Chi­nese are buy­ing about 40 per­cent of luxury goods sold in France and ac­count for 35 per­cent of such sales in Italy and 25 per­cent in Bri­tain. Their in­ter­est in daily con­sumer goods surged fol­low­ing the fren­zied buy­ing by Chi­nese of elec­tronic toi­let seats and rice cook­ers in Ja­pan dur­ing the Spring Fes­ti­val hol­i­day. (Photo 5)

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