China will reduce import tariffs on a large number of goods next year in its latest move to expand domestic demand and advance high-standard opening up, according to the Customs Tariff Commission of the State Council on Saturday.
Provisional import tariffs, lower than the most-favored-nation rates, will be applied to 935 commodities as part of an annual tariff adjustment plan effective from Jan. 1, 2025. This plan "will help increase the imports of quality products," according to a statement from the commission.
This tariff reduction aligns with the need to foster new quality productive forces through scientific and technological innovation, enhance people's well-being, and promote green and low-carbon development, the commission said.
For instance, lower provisional tariffs will be implemented for some raw materials, including ethane, cycloolefin polymers and ethylene-vinyl alcohol copolymers, which are important basic materials for the petrochemical industry.
"This time, several of our key products remain in short supply in China, and domestic industries are facing urgent demand. Implementing provisional import tariffs effectively reduces import costs. On one hand, this is conducive to the application of green technologies; on the other, it helps guide the development and growth of high-performance, high-tech products downstream," said Fan Min, deputy head of the Information and Market Department at the China Petroleum and Chemical Industry Federation.
Some recycled copper and aluminium raw materials will also see their import tariffs reduced, according to the commission.
In addition, automatic transmissions for special-purpose vehicles such as fire trucks and repair vehicles will enjoy lower import tariffs, which analysts say will better guarantee the production of such vehicles and improve their competitiveness.
While continuing to apply zero tariffs on some drugs and raw materials to treat cancer and rare diseases, the country will cut tariffs on sodium zirconium cyclosilicate, viral vectors for CAR-T tumor therapy, and nickel-titanium alloy wires for surgical implants.
This adjustment is the first annual tariff revision since the implementation of the Customs Duty Law, reflecting the principle of statutory taxation.
"The Customs Law came into effect on December 1, 2024. This tariff adjustment fully reflects several legislative principles established by the Customs Law, including the key provisions outlined within it," said Gao Lingyun, a research fellow at the Institute of World Economics and Politics under the Chinese Academy of Social Sciences.
The adjustment plan also states that, in response to the development of domestic industries and changes in supply and demand, import tariffs on certain commodities, such as syrup, sugar-containing premixed powder, vinyl chloride, and battery separators, will be increased, within the framework of China's commitments upon joining the World Trade Organization (WTO).
"Based on our development, we are now able to produce certain products domestically. As a result, we have adjusted provisional import tariffs. Some tariffs have been removed, while others have been increased. For the products with increased provisional import tariffs, the rates remain lower than the most-favored-nation tariff rates, meaning our actions are still within WTO rules. The advantage of this approach is that it allows us to maintain a high level of openness while fostering high-quality development," said Gao.
Following the adjustment, China's overall tariff level remains at 7.3 percent, which is relatively low by global standards.
China launches tariff adjustment plan to spur high-quality development
China launches tariff adjustment plan to spur high-quality development
China launches tariff adjustment plan to spur high-quality development
