In an unexpected move China’s customs tariff commission announced cuts to China import tariffs from the 1st January 2020. These tariff cuts effect 859 commodites, predominantly :
- Consumer goods
- Raw materials for pharmaceutical goods
- raw material for manufacturing high-tech goods
This clearly underlines the need for China to plug the gap in domestic production. Fulfilling that need as China advances it’s manufacturing and service industries. Benefiting suppliers from a broader region than the USA.
China and The US trade deal
China has signalled a change in tactics. Cuts to China import tariffs come less than two weeks after a deal was reached with the US. Ongoing trade negotiations with the USA have gone well but have highlighted a need to broaden China’s scope. Serious in diversifying the inbound market these cuts will help suppliers globally to the Chinese import market.
The import tariff cuts signify a willingness to open China’s economy. Matching the growing needs of businesses affected by the trade war. In 2019 China enacted similar tariff cuts covering 706 products.
What items will be affect by the cuts to China import tariff s
The tariffs lowered will stimulate import potential in key areas. Where a relative domestic shortage or a high demand for foreign speciality goods.
A good example of this is the cut in import tariffs on frozen Pork. A swine fever outbreak in August 2018 crippled the domestic pork supply. The reduction in import tariffs should release the pressure,
China’s plan to lower tariffs on raw materials for medication should provide benefits to it’s ageing population. With the reduction in production costs for medicament’s for Asthma and Diabetes being of particular importance.
Economy stimulus : China import tariffs
China’s economy has slowed in recent years. Presently expanding at it’s weakest rate in nearly 30 years. This is unlikely to change next year without stimulus action. China import tariffs are a key driver and the cuts to specific commodities are welcome. These provisional tariff reductions are good news for Chinese businesses, consumers and foreign suppliers to the Chinese economy.
For all of China’s customs tariffs there HS codes are available here on Forwarders matter. Look under Menus – Customs Tariffs for all available HS codes worldwide.