China to lower import tariffs on 954 products beginning 2022

Consumers buy imported goods at a fair featuring products introduced into China via the China International Import Expo (CIIE) on Nanjing Road Pedestrian Street in Shanghai, Nov. 5, 2021. [Photo by Wang Gang/People's Daily Online]

China will implement provisional import tariffs lower than the most-favored-nation (MFN) rates on 954 products starting from Jan. 1, 2022, announced the Customs Tariff Commission of China's State Council on Dec. 15.

To ease the financial burden on patients and improve people's well-being, the country will eliminate tariffs on a radium chloride injection, a new anticancer drug, and reduce tariffs on some imported medical products, including intracranial stents and prosthetic joints.

To satisfy people's needs for a better life, conform to the trend of consumption upgrading, as well as encourage more people to engage in ice and snow sports so as to create a sound atmosphere for the upcoming Beijing 2022 Olympic and Paralympic Winter Games, China will cut import tariffs on high-quality aquatic products like salmon and cod, baby clothes, dishwasher, skiing gear, and some other consumer goods.

Besides, it will implement zero tariffs on oil paintings that are more than 100 years old and other types of artwork to meet people's demands for cultural consumption.

To improve environmental quality and promote green and low-carbon development, the country will lower customs duties on imported gasoline particulate filters and electronic throttles, which can improve the fuel efficiency of vehicles and reduce their exhaust emissions, as well as peat that can be used for soil remediation.

To drive the optimization and upgrading of the manufacturing industry, China will cut import tariffs on high-purity graphite accessories, high-voltage cables for high-speed trains, membrane electrode assemblies and bipolar plates of fuel cells, and other key components.

The country will also cut the import tariffs on raw materials required by the food processing, daily chemical, and leather manufacturing industries, including cocoa beans, essential oils from plants, and animal fur.

Besides, it will reduce import duties on pyrite, pure potassium chloride, and other resource products in short supply at home.

Such tariff adjustments, which are based on China's development needs, help maintain the safety and stability of domestic industrial and supply chains, supporting the cross-cycle smooth operation and long-term sound performance of the economy, optimizing resource allocation, facilitating scientific and technological innovation and industrial transformation and upgrading, and pushing ahead with green and low-carbon development, pointed out Xu Guangjian, a professor at the School of Public Administration and Policy, Renmin University of China.

To continuously advance higher-level opening-up, China will, according to the free trade agreements and preferential trade arrangements signed with relevant countries and regions, impose conventional tariff rates on some products from 29 countries or regions next year.

China will also lower its tariffs under its free trade agreements (FTAs) with New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Pakistan, Georgia, Mauritius, and the Asia-Pacific Trade Agreement.

The Regional Comprehensive Economic Partnership (RCEP) and China-Cambodia FTA will take effect on Jan. 1, 2022, under which the country will cut tariffs on imports from relevant countries.

Under the high-profile RCEP, China and Japan will carry out tariff reduction arrangements for the first time, which will undoubtedly bring about new opportunities for both countries, according to Cui Fan, a professor at the School of International Trade and Economics, University of International Business and Economics.

After the RCEP agreement takes effect, the tariff reduction among members will help promote regional trade and investment growth, elevate the level of economic integration in East Asia, consolidate and promote the integration of regional industrial, supply, and value chains, and boost members' confidence in post-COVID-19 economic growth, Cui said.

The RCEP will also enable China to give full play to the advantage of its super-large market, actively participate in reshaping the global industrial chain, build a globally oriented network of high-standard free trade zones, and advance higher-level opening-up, he added.

Starting from July 1, 2022, China will implement the seventh MFN tariff concession on 62 products covered by the Information Technology Agreement expansion. After the adjustment, China's overall tariff level will remain at 7.4 percent, the same as that of 2021.

Next year, China will continuously apply preferential tariff rates to goods from the least developed countries that have established diplomatic relations and completed the exchange of notes on establishing diplomatic relations with China.