China will reduce or cancel tariffs on some imported goods and materials from 2022 in a bid to support the new development model and promote high-quality openness, according to the finance ministry.

The new provisional tariff rates on imports, which will be lower than the most favored nation (MFN) tariff rates, will apply to 954 types of goods as of January 1, including medicines, food products, equipment winter sports and automotive components, the Office of the State Council Customs Tariff Commission, announced Wednesday.

Import duties will be removed on certain anti-cancer drugs as well as oil paintings and other works of art over 100 years old.

As of July 1, China will make the seventh reduction in MFN tariff rates for 62 types of information technology products. After the adjustment, China’s total tariff level will continue to be maintained at the 7.4 percent level, according to the Office of the Tariff Commission.

The changes aim to maintain the security and stability of the national industrial chain, to support scientific and technological innovation and modernization, to build a global network of high-level free trade zones and to continue to promote an opening of high level, the office said.

In order to promote high-level openness, China will apply tariffs on commodities from 29 countries or regions from 2022, in accordance with China’s free trade agreements.

The tariff rates applied on goods originating in several countries and regions, including New Zealand, Peru, Costa Rica, Switzerland and Iceland, will be further reduced, in accordance with free trade agreements with China.

On Jan. 1, the Regional Comprehensive Economic Partnership (RCEP) and the China-Cambodia FTA will come into effect, according to the finance ministry.

These tariff cuts are in line with China’s efforts to further lower import tariffs and increase imports of high-quality goods and services with the aim of promoting regional economic integration.

According to the Commerce Ministry, China and Singapore have made positive progress in follow-up negotiations on upgrading bilateral FTAs.

China and Singapore held the third follow-up negotiations on improving the free trade agreement by video link on Tuesday, in which the two sides agreed to continue negotiations and promote consultation on trade in services. and access to investment markets with the aim of improving the level of bilateral trade and investment liberalization.
Source: Global Times