China to lower import tariffs on industrial products

Reuters - China will begin lowering the most-favored nation tariff rates on certain industrial products and goods according to its finance ministry. These include textiles, ceramics, glass, steel and metal products, starting from November 1. Metal processing machinery, along with mechanical and electrical equipment are also on the list of 1,585 items. The general tariff level of these goods will go down to 7.8 percent from 10.5 percent. At the same time, China's general tariff level is now down to 7.5 percent from 9.8 percent. The upcoming tax adjustment marks the fourth time China has lowered tariffs on imported goods in 2018, since President Xi Jinping made such pledges during the Boao Asia Forum in April. The previous three major cuts were a zero tariff policy on most of medicines, a slash on automobiles and auto parts, and a tariff cut on daily necessities. Presently, China's general tariff levels are lower than that of most developing economies, and is only slightly higher than the European Union. The Customs Tariff Commission of the State Council say these tax cuts will cope with the people's rising needs for a better life. It will also stimulate the upgrading of the domestic industrial structure, improve supply efficiency, and optimize resource allocations. Officials also say this move shows China's commitment to opening up, globalization, free trade, and multilateralism under the World Trade Organization framework.