At the start of 2021, China announced stronger measures to reduce import tariffs. Not only are the applicable interim tariff rates now lower than the most-favored-nation (MFN) tax rates, but they also have a broader range, covering a total of 883 commodities. In addition to slashing tariff rates, the government has also adjusted taxation rules and taxable items, involving 8,580 items in eight taxation categories. This move brings taxation categories into better alignment with the development of industries and the advancement of science and technology.

The tariff reductions involve multiple categories of products. Among them, a zero-tariff policy is implemented for the second batch of raw materials for anti-cancer drugs and for foods required by special silk children. Lower tariff rates are applied to medical devices, such as artificial heart valves and hearing aids, as well as raw materials for infant formula milk powder, like whey protein powder and lactoferrin. Lowering the import tariffs on these goods helps to reduce the economic burden of patients, improve the quality of life, and ensure the dynamic balance in which demand drives supply and supply creates demand.

The tariff cuts also cover commodities involved in China’s multilateral and bilateral free trade agreements. Due to the broad scope of these agreements, the range of tariff reductions typically covers the commodities that constitute about 90% of the bilateral trade volume. The tariff reductions are expected to significantly boost trade. So far, China has entered into 19 free trade agreements with 26 countries and regions. The tax reductions came at two different times. On January 1, import tariff rates were cut for commodities covered by the bilateral trade agreements between China and New Zealand, Peru, Costa Rica, Switzerland and Iceland, as well as by the Asia-Pacific Free Trade Agreement (APFTA). Starting on the same date, APFTA tariff rates are applied to certain imports originating in Mongolia, and imports covered by the China-Mauritius free trade agreement are subject to the agreed tariff rates or the MFN tariff rates, whichever are lower. In addition, on July 1, tariff rates were further reduced for products covered by the bilateral trade agreement between China and Switzerland and the Asia-Pacific Trade Agreement. The sixth-step reduction of the MFN tariff rates was implemented for products covered by the Information Technology Agreement. Reducing import tariffs is conducive to expanding imports and stabilizing import growth amid the considerable uncertainty in the international market.

（Source: China News Service )