China is planning to cut the average tariff rates on imports from the majority of its trading partners as soon as next month, two people familiar with the matter said, in a move that will lower costs for consumers as a trade war with the U.S. deepens.
Premier Li Keqiang said Wednesday that China would further reduce the tariffs, without elaborating.
By cutting duties on goods even as it retaliates against President Donald Trump's trade war with higher charges on some U.S. goods, China is following through on long-stated goals to boost imports.
"By further cutting import taxes, China is sending a message that it will keep opening up and reform no matter how the trade war goes. It's more like a commitment to both domestic and international audience. It's a gesture," said Tommy Xie, an economist at Oversea-Chinese Banking Corp Ltd in Singapore.
China's most-favored nation average tariff currently stands at 9.8 percent.
China still has a higher average tariff rate than many developed economies.
The U.S.' average applied MFN rate was 3.4 percent in 2017, and in general the Trump administration has accused China of being a protectionist economy.
http://www.theedgemarkets.com/article/china-said-plan-broad-import-tax-cut-soon-october
Premier Li Keqiang said Wednesday that China would further reduce the tariffs, without elaborating.
By cutting duties on goods even as it retaliates against President Donald Trump's trade war with higher charges on some U.S. goods, China is following through on long-stated goals to boost imports.
"By further cutting import taxes, China is sending a message that it will keep opening up and reform no matter how the trade war goes. It's more like a commitment to both domestic and international audience. It's a gesture," said Tommy Xie, an economist at Oversea-Chinese Banking Corp Ltd in Singapore.
China's most-favored nation average tariff currently stands at 9.8 percent.
China still has a higher average tariff rate than many developed economies.
The U.S.' average applied MFN rate was 3.4 percent in 2017, and in general the Trump administration has accused China of being a protectionist economy.
http://www.theedgemarkets.com/article/china-said-plan-broad-import-tax-cut-soon-october
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