China will reduce import tariffs on 850 products in 2020

Starting January 1, 2020, China will reduce tariffs on 850 products, ranging from frozen pork and avocado to some types of semiconductors. The country seeks to increase imports amid the economic slowdown and the trade war with the United States. This compares to 706 products that were temporarily taxed in 2019.

The changes were adopted to “increase imports of products facing relative domestic scarcity, or foreign special products for daily consumption,” the Chinese Ministry of Finance said in a statement published on 12/23 on its website.

China and the United States eased their trade war this month by announcing phase one of an agreement that will cut some US tariffs in exchange for more Chinese purchases of US products, especially agricultural ones.

The finance ministry said the tariff on frozen pork would be reduced to 8% from 12% as China faces supply shortages after a serious swine disease decimated its pork production.

The Chinese government will also reduce temporary import tariffs for ferroniobium – used as an additive to low-alloy steel and high-strength stainless steel for oil and gas pipelines, cars, and trucks – from 1% to zero in 2020, aiming at high-tech development. The country imported 35,909 tons of ferroniobium in 2018 and 37,818 tons in the first 10 months of this year.

China’s economy is expanding at its weakest rate in nearly 30 years and may face more pressure next year, but the government has promised to keep growth within a reasonable range by 2020 and maintain effective policies.

Source: Reuters

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