CHINA is expected to use next week's Asia-Pacific Economic Co-operation (APEC) meeting to propose a large cut in tariffs for imported products across the board, beginning early next year.
The scale of the proposed adjustment would be comparatively larger than previous adjustments, according to a Chinese official. The average tariff level now is around 35 per cent.
Other liberalisation initiatives from China will include a lowering of non-tariff barriers such as import permits, opening up of more cities for foreign banks, further relaxation of foreign investment in the retail business and improved national treatment of foreign businesses in China.
Sources said benefits for Hong Kong would include a commitment to bind around 33 per cent of the value of its imports at zero per cent tariff. The territory would also offer to further liberalise its financial sector. Offers for other members would include speeding up tariff reductions, as agreed in the Uraguay Round Agreement.
At last year's summit, APEC leaders set 2010 as the target date for industrialised members such as Japan and the US to meet the free trade goal in the region, and 2020 for developing members such as China and Indonesia.
Ministers and senior officials from 18 members will finalise the 'Action Agenda' for this goal at APEC senior official and ministerial meetings in Osaka early next week.