China adjusts tariffs to boost imports of high-quality products

Starting from Jan. 1, 2025, provisional import tariffs, lower than the most-favored-nation rates, have been applied to 935 Chinese commodities as part of an annual tariff adjustment plan recently issued by the Customs Tariff Commission of China's State Council.

Experts said that lower provisional tariffs have been implemented for some raw materials, drugs, equipment, and components. Besides, China has adjusted the import tariff rates and items on certain goods in an effort to boost imports of high-quality products, expand Chinese domestic demand, advance high-level opening up, and promote high-quality development.

Citizens shop in a store selling products imported from Russia in Gaoping district, Nanchong, southwest China's Sichuan province. (People's Daily Online/Yang Bo)

The tariff adjustments were implemented in three aspects. First, to foster new quality productive forces through scientific and technological innovation, cycloolefin polymers, ethylene-vinyl alcohol copolymers, and automatic transmissions for special-purpose vehicles such as fire trucks and repair vehicles can enjoy lower import tariffs.

Second, to enhance people's well-being, China has cut tariffs on sodium zirconium cyclosilicate, viral vectors for CAR-T tumor therapy, and nickel-titanium alloy wires for surgical implants.

Third, to promote green and low-carbon development, ethane and some recycled copper and aluminium raw materials also see their import tariffs reduced.

According to Fan Min, deputy head of the information and market department of China Petroleum and Chemical Industry Federation, ethane, cycloolefin polymers, and ethylene-vinyl alcohol copolymers are important basic materials for China's petrochemical industry. The tariff cuts can promote the application of green and low-carbon manufacturing processes and drive the development of high-tech, and high-performance products in downstream industries, Fan added.

Demonstrating China's commitment to high-level opening up

The tariff adjustments also demonstrate China's sense of responsibility as a major trading nation under the current international economic situation.

In 2025, China will continue to offer zero-tariff treatment on 100 percent of tariff lines to the 43 least developed countries (LDCs) with which it has diplomatic relations in a bid to support their development and foster mutual benefits.

At the same time, China will continue to apply preferential tariff rates to certain products from Bangladesh, Laos, Cambodia, and Myanmar in accordance with the Asia-Pacific Trade Agreement and its exchange of notes with ASEAN member states.

"Starting Dec. 1, 2024, China has given all the LDCs with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines. In 2025, China will continue to implement this unilateral opening-up policy," said Cui Fan, professor with the University of International Business and Economics.

At the same time, conventional tariff rates are applied to certain products from 34 countries and regions under 24 free trade and preferential trade arrangements in 2025, up from 30 countries and regions under 20 free trade and preferential trade arrangements as compared to the 2024 tariff adjustment plan. These changes signify an expanding "circle of friends" in China's foreign trade, Cui noted.

A man works in an imported product warehouse in Jinyi Comprehensive Free Trade Zone in Jinhua, east China's Zhejiang province. (People's Daily Online/Shi Kuanbing)

As the first annual tariff adjustment plan after the adoption of the law on customs duties, this plan represents China's commitment to steadily expanding institutional opening up, unilaterally opening its doors wider to LDCs, and expanding the globally-oriented network of high-standard free trade areas. It also demonstrates China's proactive efforts to promote high-quality development via high-level opening up, said Cui.

"China has adopted a flexible and targeted approach in tariff adjustment. It has reduced provisional import tariffs on key equipment and components, drugs, medical equipment, and energy products. Besides, the country has also adjusted or eliminated provisional import tariffs on products for which it has a certain level of production capacity and competitiveness," said Gao Lingyun, a researcher with the Institute of World Economics and Politics under the Chinese Academy of Social Sciences.

Gao noted that these adjustment measures are contributing to China's efforts to expand opening up and promote industrial upgrading.

Supporting measures keep unfolding in different regions

Relevant departments in China have introduced a range of supporting measures. For instance, on Dec. 29, 2024, China's General Administration of Customs announced a new round of 16 measures to promote the integrated development of the Yangtze River Delta and boost imports of high-quality products.

One measure involves working with local governments to push forward the pilot program for a "white list" of imported materials for biopharmaceuticals research and development in the region to support regional synergy.

Another measure is to set up a pilot program in Yiwu, east China's Zhejiang province, for a positive list management system of imported daily consumer goods.

Additionally, a collaborative mechanism is underway to facilitate grain imports in the region, which will link entry ports, transit ports, and destination customs to enable information sharing, mutual assistance in law enforcement, and mutual recognition of results.

Experts noted that as China continuously expands voluntary opening up and creates more favorable conditions for high-quality imported products, more and more foreign market players are expected to benefit from its growing import demand.