China slashes tariffs on 187 import products
BEIJING – China’s Ministry of Finance announced on its website yesterday that the average tariff for 187 products, ranging from baby diapers to ski equipment, will be slashed to 7.7% from 17.3%. The change will be effective from December 1.
The Ministry explained that its objective was to “fulfil households’ needs to upgrade their consumption”.
The tariff cuts cover a wide range of consumer goods. As two examples, the tariff for “Special infant milk powder of partial hydrolysis formula of lactoprotein, deep hydrolysis formula of lactoprotein, amino acid formula” (tax code: 21069090) has been slashed from 20% to 0%; and the tariff for “Whiskey” (tax code: 22083000) cut from 10% to 5%.
Commenting on the decision, ANZ Bank said it showed that the Chinese Government is carrying out President Xi Jinping’s call to improve the quality of life of Chinese households.
“Given the rise in the size of China’s middle class, the demand for quality imports is rising,” ANZ says.
“The tariff cuts seem to fit well with such a theme. The move confirms that China will adhere to the open door policy following the 19th Party Congress.”
ANZ added that he mega size of China’s consumer market woud continue to enable the country to play the hand it is dealt in bilateral economic negotiations.
“With China being one of the most vocal advocates of globalisation, we expect such tariff reductions will be announced from time from time,” it said.
“This will support China’s demand for greater market access (ie foreign direct investment) and strategic acquisitions (eg technology) in other countries.” www.live.anz.com (ATI).