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China cuts tariffs on more than 700 goods in bid to open up economy and lower domestic consumer costs

  • Ministry of Finance will implement zero tariffs on imports of a variety of meals including sunflower and canola as well as pharmaceutical manufacturing materials
  • Taxes on hi-tech imports will be set ‘relatively low’ as Beijing seeks to implement President Xi Jinping’s promises amid trade war with the United States

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A robot welds parts at the Jinan Truck Company of the China National Heavy Duty Truck Group in Jinan. Photo: Xinhua

China will lower import taxes on more than 700 goods from January 1 in another round of tariff cuts as part of its efforts to open up the economy and lower costs for domestic consumers.

There will also be cuts to some export tariffs, and temporary import tariff rates will be as low as zero for some goods, the Ministry of Finance said in a statement on Monday.

The temporary rates can be changed ad hoc and can be lower than the current Most-favoured nations (MFN) standard, although they are also available to all World Trade Organisation members.

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This is the third round of tariff cuts announced this year as China looks to cut costs for consumers and implement President Xi Jinping’s promises to open up further.

US exports will receive the benefit of the reductions as well, although most products will still be subject to the retaliatory tariffs until there is a breakthrough in the ongoing talks. 
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A China Shipping container at the port in Qingdao in eastern China's Shandong province. Photo: AP
A China Shipping container at the port in Qingdao in eastern China's Shandong province. Photo: AP

With tariffs on US soybeans stopping a key source of edible meal often used for animal feed, China will implement zero tariffs on imports of a variety of meals including sunflower and canola.

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