China Announces Tariff Reduction on 850 Foreign Trade Consumer Goods
Hülya Karahan: Production Editor
On Monday (December 23), the Beijing authorities announced that they would reduce the foreign trade tariffs of more than 850 consumer goods to the most-favored nation tax rate, encouraging Chinese companies to Carrying out import of goods to the United States and other countries.
According to the Ministry of Finance of the Communist Party of China, starting from January 2020, Beijing will reduce import tariffs on frozen pork, semiconductor products, wood, and paper products, and implement zero tariffs on raw materials used to treat asthma medicines and produce diabetes medicines.
Beijing said that in 2020, some of the commodities in 23 countries or regions would be subject to an agreed tax rate, and it is expected to reduce the “most-favored nation tax rate on 176 information technology products” starting from July 2020.
The Chinese approach is in line with Washington’s request for Beijing to reduce trade barriers.
China and the United States announced the first phase of a trade agreement in mid-December. According to the agreement, Beijing is expected to purchase US $ 200 billion worth of U.S. goods and services within two years. It also needs to invest in intellectual property, technology transfer, finance, Structural reforms in areas such as exchange rates. US officials expect that China and the United States will be able to sign an agreement in early January.
Last week, Beijing announced the second exclusion list for the first batch of goods on the U.S. tariff list, eliminating retaliatory tariffs on six types of industrial products.
The White House did not comment on the news Sunday (December 22). Following news of tariff reductions in Beijing, U.S. President Trump (Trump) retweeted reports from Bloomberg and Reuters without providing any comment.
The tariff committee at the State Council said in a statement that the changes would allow stimulating “the commercial structure and high-quality development of the economy.”
China had launched a plan to reproduce swine meat by 2021, to the level it was before the spread of the African swine fever, which led to the elimination of about forty percent of its flocks.
And the Chinese Ministry of Commerce said that the country will import in 2019 twice as much as it imported pork last year.
The Chinese Finance Ministry said in a statement on its website that from July 1, China will also reduce customs duties on some technological products, noting that the decision includes printers and spare parts for audio recorders, among others.
The fees for some satellite TV broadcasters will be reduced from 10 percent today to 5 percent.
The statement indicated that it will further reduce customs duties on goods from countries including New Zealand, Peru, Costa Rica, Switzerland, Iceland, Australia, South Korea and Pakistan in the context of renegotiating trade agreements.
US President Donald Trump carried the news reported by Bloomberg and Reuters agencies about reducing Chinese tariffs, without any comment.
It is worth noting that this month, Beijing and Washington announced an exchange of customs duties cuts for some products.