China to lower import tariff on more products in high demand for 2021

Representational image.

BEIJING (Reuters) - China will lower import tariffs on more products in high domestic demand for next year, including medical equipment, raw materials for baby powders, high-tech equipment and some commodities, the finance ministry said on Wednesday.

For 2021, China will implement temporary import tariffs, which are lower than the most-favoured-nation tariffs, on 883 products, up from 859 products taxed at temporary rates in 2020.

The tariff changes are made to satisfy domestic demand and boost the technology development of Chinese industries so that a "great circulation" of the domestic economy would be formed, said the ministry.

Facing hostilities from the United States, Beijing has unveiled a "dual circulation" strategy for the next phase of its economic development, in which it would rely mainly on "domestic circulation" - the internal cycle of production, distribution, and consumption, supported by innovation and upgrades in the economy.

To improve people's livelihood, China will exempt import tariffs on some anti-cancer drugs and raw materials of rare disease drugs, while import duties on artificial heart valves, hearing aids, as well as some raw materials for baby powders, are to be lowered.

Beijing will also lower import duties on parts, raw materials, and industrial equipment used in its new infrastructure and high-technology push, in order to meet domestic demand. Emission-filtering devices for diesel engine vehicles would also see their import rates cut as a result of the government's environmental drive.

Tariffs for some non-alloyed nickel and the minor metal niobium will be slightly cut in 2021 to encourage more imports, the ministry said, while sliding tariffs on cotton cargoes brought in under additional quotas will be reduced marginally, a move traders said would lower costs of importing the fiber.

 

 

(Reporting by Lusha Zhang, Stella Qiu, Hallie Gu, Tom Daly, Yilei Sun and Ryan Woo; Editing by Himani Sarkar and Bernadette Baum)


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel