China slashed import taxes, balance of trade headed south

China OKs Measures To Boost Imports, Balance Trade
China's cabinet has agreed to temporarily lower import duties on energy and raw materials and boost financing for importers in key sectors to help reduce the country's trade surplus and ease trade frictions.

The State Council said in a statement posted on the government's website Friday it would encourage policy banks to provide financing for imports of high technology items as well as some resources, adding that boosting imports is crucial to achieving more balanced trade.
The move is aimed to ease some of the protectionist tensions.
China's vice commerce minister, Zhong Shan, said last year Beijing is facing severe trade challenges with the number of foreign trade disputes climbing. The latest data showed that 16 countries started a total of 60 investigations into Chinese products between January and November last year.

The cabinet said the move would also ease pressure on domestic resources and the environment as well as speed China's efforts at upgrading its technology.

Import tariffs for some consumer goods and components for strategic industries will also be lowered temporarily while China will expand its program of offering tariff-free imports for certain goods, the statement said.
Unspoken is that lower tariffs will lower prices and help keep a lid on inflation. Now let's see how the rest of the world responds.

No comments:

Post a Comment