With the aim of spurring spending and cause economic growth, import tariffs on a large number of consumer goods – 187 to be particular, have been reduced by Chinese authorities. The goods range from whisky to cashmere clothing.
For products that include pharmaceuticals, food, health supplements and clothing, the drop in the tariff would be substantial – from the current rate of 17.3 percent to 7.7 percent, the Finance Ministry of the second largest economy of the world, said.
The new rates of import tariffs would be applicable from the start of December this year.
Encouraging consumers to spend more while they are at home, instead of them spending a lot while they are visiting other countries is the aim of the move.
China has been attempting to create a consumption economy for itself as it shifts from an export oriented economy and it is widely believed that the current steps are a part of that strategy of the country, as well as sending strong signals to the world, the United States in particular, that the country is further opening up its economy.
A call to reduce the trade deficit that America has with China has bene given by the US President Donald Trump as he has been complaining for a long time the alleged unfair trade practices by China.
Particularly following a number of food-safety scandals, the local population in China has been creating more demand for foreign brands.
The import tariffs were described as being a positive development by Doug Lippoldt, chief trade economist at HSBC, and added that these were a part of an "on-going process" by the government.
"The reduction of import tariffs on clothing, dairy products, food and other consumer items mean domestic suppliers will have to become more competitive, which will benefit the Chinese economy and consumers in the long run.
"It would also help Chinese manufacturers if the government looked at the liberalisation of services, such as accountancy, telecoms and IT.
"I think trade partners in advanced economies will see this as a step in the right direction."
The import tariff for Scotch whisky has been reduced from 10 percent to 5 percent which has been welcomed by Scotch whisky producers.
China was an important market for the spirit, said Rosemary Gallagher, from the Scotch Whisky Association.
"In the first six months of 2017, demand for Scotch in China jumped as the economy grew, with direct exports alone up 45% to £27m.
"A cut in tariffs will give another welcome boost to Scotch and should encourage the premium Scotch whisky market to continue to expand," she added.
Tariffs would also be reduced for food and infant formula and this would be the third cut by the country in tariffs since 2015. There would also be zero tariffs for some forms of baby milk powder and diapers.
(Source:www.bbc.com & news.xinhaunet.com)
For products that include pharmaceuticals, food, health supplements and clothing, the drop in the tariff would be substantial – from the current rate of 17.3 percent to 7.7 percent, the Finance Ministry of the second largest economy of the world, said.
The new rates of import tariffs would be applicable from the start of December this year.
Encouraging consumers to spend more while they are at home, instead of them spending a lot while they are visiting other countries is the aim of the move.
China has been attempting to create a consumption economy for itself as it shifts from an export oriented economy and it is widely believed that the current steps are a part of that strategy of the country, as well as sending strong signals to the world, the United States in particular, that the country is further opening up its economy.
A call to reduce the trade deficit that America has with China has bene given by the US President Donald Trump as he has been complaining for a long time the alleged unfair trade practices by China.
Particularly following a number of food-safety scandals, the local population in China has been creating more demand for foreign brands.
The import tariffs were described as being a positive development by Doug Lippoldt, chief trade economist at HSBC, and added that these were a part of an "on-going process" by the government.
"The reduction of import tariffs on clothing, dairy products, food and other consumer items mean domestic suppliers will have to become more competitive, which will benefit the Chinese economy and consumers in the long run.
"It would also help Chinese manufacturers if the government looked at the liberalisation of services, such as accountancy, telecoms and IT.
"I think trade partners in advanced economies will see this as a step in the right direction."
The import tariff for Scotch whisky has been reduced from 10 percent to 5 percent which has been welcomed by Scotch whisky producers.
China was an important market for the spirit, said Rosemary Gallagher, from the Scotch Whisky Association.
"In the first six months of 2017, demand for Scotch in China jumped as the economy grew, with direct exports alone up 45% to £27m.
"A cut in tariffs will give another welcome boost to Scotch and should encourage the premium Scotch whisky market to continue to expand," she added.
Tariffs would also be reduced for food and infant formula and this would be the third cut by the country in tariffs since 2015. There would also be zero tariffs for some forms of baby milk powder and diapers.
(Source:www.bbc.com & news.xinhaunet.com)