China has reduced import tariffs on a large number of goods to expand domestic demand and promote high-standard opening-up. Provisional import tariffs, lower than most favored nation rates, were applied to 935 commodities as part of an annual tariff adjustment effective January 1. This plan “will help increase the imports of quality products”, according to a statement from the Customs Tariff Commission of the State Council, China's government. The tariff reduction aligns with the need to foster new quality productive forces through scientific and technological innovation, enhance people’s well-being, and promote green and low-carbon development, the Commission said. Lower provisional tariffs have been implemented for some raw materials, including ethane, cyclo-olefin polymers and ethylene-vinyl alcohol copolymers, which are important basic materials for the petrochemical industry. “These tariff cuts will effectively reduce the production costs of enterprises, promote their technological innovation and facilitate the green development of the petrochemical industry,” said Fan Min, Deputy Director of the Information and Market Department of the China Petroleum and Chemical Industry Federation.
Some recycled copper and aluminum raw materials have also had their import tariffs reduced. In addition, automatic transmissions for special-purpose vehicles such as fire trucks and repair vehicles now enjoy lower import tariffs, which analysts say will better guarantee the production of such vehicles and improve their competitiveness. While continuing to apply zero tariffs on some drugs and raw materials to treat cancer and rare diseases, the country has cut tariffs on sodium zirconium cyclosilicate, viral vectors for CAR-T tumor therapy, and nickel-titanium alloy wires for surgical implants. By continuously reducing import tariffs on pharmaceutical raw materials and medical equipment in high demand, China will better ensure people’s access to medical services, said Gao Yuning, Vice Dean of the School of Public Policy and Management of Tsinghua University. China has been bringing down import tariffs for drugs and active pharmaceutical ingredients since 2018.
Under 24 free trade and preferential trade agreements, conventional tariff rates will this year be applied to certain products from 34 countries or regions as part of China’s efforts to expand its network of high-standard free trade areas. For example, lower tariffs under the China-Maldives free trade agreement, effective January 1, will eventually lead to zero tariffs on nearly 96% of tariff lines between the two sides. China will also continue to offer zero-tariff treatment on 100% of tariff lines to the 43 least developed countries with which it has diplomatic relations in a bid to support their development and foster mutual benefit, the China Daily reports.
