China to Lower Tariffs As It Seeks to Boost the Economy and Reach Trade Deal With US

Tariffs on 859 types of products to be lowered as Beijing seeks to boost the economy and reach trade deal with the US.

 

CHINA

Tariffs on 859 types of products to be lowered as Beijing seeks to boost the economy and reach trade deal with the US.

Beijing Blues: China has had typically high tariffs in order to protect and support local industries. But now, it has said it will cut tariffs in order to protect and support the economy.

 

The Ministry of Finance said the tariff changes would be made to "increase imports of products facing a relative domestic shortage, or foreign specialty goods for everyday consumption".

 

That includes tariff rates on 859 types of products, including some semiconductors, medications, and frozen pork - due to be lowered to 8% from 12% for some countries. (FYI: China is struggling to cope with an outbreak of African swine fever, which has wiped out as much as half the country's pig population.)

 

The countries that will benefit most from the lower tariffs will include New Zealand, Peru, Singapore and Pakistan. BBC

 

Making Nice: China's announcement comes as it is in talks to sign a comprehensive trade deal with the US so that the bitter trade war - which has raged for two long years - can come to an end. Beijing has said it would purchase more American goods, including farm products. WSJ

 

All Fall Down: Adam Boehler, chief executive of the US International Development Finance Corporation, recently told the Financial Times that China's international infrastructural investments were like a "house of cards" that could one day come crashing down, taking with it several emerging economies. He cited debt overload, poor infrastructure, bribes and lack of transparency as reasons for this. Read more here.

FIN.

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