China will cut import tariffs for frozen pork, pharmaceuticals and some high-tech components starting from Jan. 1, a move that comes as Beijing and Washington are trying to complete a phase-one trade deal.
China will also cut import tariffs for a range of other products including some high-tech components from January 2020 onwards, a step that comes as Beijing and Washington are aiming to close phase-one of their trade-deal.
The plan, approved by China’s Cabinet, will cut down tariffs for all trading partners on over 850 products to below the rates that most-favored nations enjoy, the Finance Ministry said Monday. ‘Most-favored-nation’ (MFN) rates are the lowest possible tariffs a country offers to its trading partners.
China has been hit by sever pork shortage after African Swine Fever tore through the country’s pig herds, leaving prices of the staple meat to more than double.
Monday’s announcement said tariffs on frozen pork will drop from 12 per cent to 8 per cent from January 1.
Other products which will have lower import tariffs include food products like fish, cheese and nuts.
Beijing will further reduce the tariffs for commodities including ferroniobium and multi-component integrated circuit memories to expand the imports of advanced technologies, equipment and spare parts. The tariff cut in the segment will come into effect from July 1 next year.
Goods from countries including New Zealand, Peru, Costa Rica, Switzerland, Iceland, Australia, South Korea, and Pakistan will also be subject to even lower levies under re-negotiated bilateral trade agreements, according to the statement.
Earlier this month, the two sides announced a mini-agreement to reduce some levies in a bruising trade war, which has dragged on global growth.
Last week, China said that a list of US chemicals that will be exempted from import tariffs, including certain types of industrial glue and adhesives, industrial polymers and types of paraffin, which can be found in cosmetics and food.
(With input from agencies)