China has unveiled plans to reduce import tariffs on several items, including ethane and certain recycled copper and aluminium raw materials, starting January 1, 2024. The Ministry of Finance made the announcement as part of a broader effort to encourage the import of high-quality products, support domestic demand, and promote high-level economic openness. The adjustments are part of a strategic move to advance green and low-carbon development while further integrating China into the global market.
Key Tariff Adjustments
The new tariff changes, which will apply to 935 items, are designed to make imports more cost-effective and foster growth in various sectors. Provisional import tariffs, set below the most-favoured-nation rates, will apply to these categories. Specific reductions will be made in areas critical to China’s push for sustainable development, such as:
- Ethane and Raw Materials: Import tariffs on ethane and select recycled copper and aluminium raw materials will be reduced. This move is aimed at fostering the country’s transition to greener, low-carbon industries.
- Green and Technological Advancements: Tariffs will also be lowered on items such as sodium zirconium cyclosilicate (used in medical treatments), viral vectors for CAR-T tumour therapy, and nickel-titanium alloy wires used in surgical implants. These measures align with China’s broader healthcare and technological goals.
Commodities with Increased Tariffs
While several tariffs will be reduced, some will rise. Notably, tariffs on commodities like molasses and sugar-containing pre-mixed powders will increase. This adjustment is in line with China’s strategic prioritization of certain industries over others.
Other Notable Reductions
Additional tariff cuts will apply to products such as:
- Specialized Automotive Parts: Import duties on automatic transmissions for special-purpose vehicles like fire trucks and repair vehicles will be reduced.
- Polymers and Copolymers: Items like cyclic olefin polymers and ethylene-vinyl alcohol copolymers, which are used in various manufacturing processes, will also see lower tariffs.
Impact of the China-Maldives Free Trade Agreement
Another significant development is the implementation of the China-Maldives Free Trade Agreement, which will come into effect on January 1, 2024. This agreement will bring about further tariff reductions, enhancing trade relations between the two nations and encouraging greater economic exchange.
These tariff changes reflect China’s ongoing efforts to modernize its economy, support sustainable growth, and strengthen its position in global trade.
