China to cut tariffs on over 850 products from Jan 1
THE MOVE SUPPORTS THE GOVT’S CLAIM TO BE FURTHER OPENING ITS ECONOMY AS IT PURSUES A DEAL WITH PRESIDENT TRUMP
BEIJING: China cut import tariffs on a wide range of goods including food, consumer items and parts for manufacturing smart-phones, continuing Beijing’s drive to lower trade barriers and spur domestic demand
The ministry of finance on Monday published a list of 859 types of products that will enjoy tariffs lower than the standard rates for this year It included frozen pork as a key item aimed at alleviating shortages of the meat due to the outbreak of African swine fever
In 2018 imports of the listed items totaled some $389 billion, according to Bloomberg calculations The provisional levies on the items will take effect from January 1
While the move isn’t directly related to the Us-china trade war, it supports the government’s claim to be further opening its economy as it pursues a deal with President Donald Trump’s administration With economic growth seen slowing next year to 6% or below, officials also have an interest in lowering the cost of imported consumer goods
Since 2017, China has been cutting import tariffs on consumer goods including wine, baby products, whiskey and seafood, items that remain on the expanded list for 2020 Drugs for treating asthma and diabetes were added to the list Smart-phone camera sensors, glass used in liquid crystal displays and organic light-emitting diode (OLED) screens found in high-end TVS and smart-phones, and semiconductor testing and sorting equipment are also included
“The move in lowering import tariffs reflects that the government wants to reaffirm its stance to the world on freer trade amid the trade war,” said Gary Ng, an economist at Natixis in Hong Kong “Domestically, lowering import tariffs are helpful in reducing business and consumer costs”
The list allows lower tariffs on goods coming from World Trade Organization members For countries with which China has free-trade agreements, duties can be lower still They include New Zealand, Peru, Costa Rica, Switzerland, Iceland, Singapore, Australia, South Korea, Georgia, Chile and Pakistan