China to reduce import tariffs on 850 key commodities, including frozen pork, from January 1

Statement did not mention the United States, but comes on the heels of announcing the phase one trade deal with Washington

China has been gradually reducing tariffs with other partner nations despite trade war with US, while language in new statement reflects wish for ‘win-win’ trade

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China has announced it will reduce tariffs on more than 850 goods including frozen pork. Photo: Reuters

Published: 9:50am, 23 Dec 2019Updated: 1:51pm, 26 Nov 2020

China is to reduce tariffs on more than 850 goods including frozen pork, hi-tech components and vital medicines, in a move billed at opening the economy to freer international trade.

The reduction has been approved by the State Council and will come into effect on January 1. While there has been no new tariff rate announced for the products, a statement from the State Council’s Tariff Commission said that it will bring them below the “most favoured nation” rates at which China now trades with many of its partners.

A reduction in the pork tariff is unsurprising, given the fact that African swine fever has decimated China’s own reserves of the country’s most popular meat. Diabetes and asthma medicines, semiconductor testing and taping equipment, memory chips and aluminium valves will also see their tariff rates slashed.

While the United States is not mentioned in the statement, the language used evokes the statement made at a press conference in Beijing on Friday 13 December, at which senior officials announced a phase one trade deal with the US. Beijing has repeatedly called for trade negotiations with Washington to yield a “win-win” deal.

Monday’s statement said that “the above-mentioned adjustment measures are conducive to reducing import costs, promoting the orderly and free flow of international and domestic trade, and promoting the establishment of a new system of a higher level, open economy”.

It added that China would “accelerate the construction of high-standard free trade zones” that are “conducive to sharing development results with other countries and regions, and creating a new situation in international trade that is open to cooperation, inclusive, and sharing a win-win situation”.

The move will reduce tariffs on 176 information technology products from July 1, 2020, while the statement also said that China will continue to reduce tariffs for those nations with which it has free trade agreements, as well as those which have signed on for its Belt and Road infrastructure initiative.

Monday’s announcement came after China had announced further progress in reaching a trilateral trade agreement with Japan and South Korea, and also as it moves closer to finalising the Regional Comprehensive Economic Partnership (RCEP) – a pan-Asian trade deal that will also bring large levels of tariff reduction.