Wednesday December 23, 2020
Tariffs are falling
China is opening up the market a little more
The world's largest market abolishes import restrictions – China announces that it will cut tariffs on numerous products. That also has to do with the trade conflict with the US.
China wants to lower import tariffs on popular products in the coming year. Their range extends from medical devices such as artificial heart valves and exhaust filters for diesel vehicles to high-tech devices and some raw materials, as the Ministry of Finance announced in Beijing. A total of 883 products are said to benefit from the regulation.
This is intended to meet domestic demand and stimulate technological development in Chinese industries. Import duties on some cancer drugs and raw materials for drugs against rare diseases are to be eliminated entirely. The measures were aimed at creating a "large cycle" of the domestic economy, the ministry said.
The trade conflict with the United States alarmed the leadership in Beijing. He has revealed that the People's Republic is heavily dependent on American high-tech products such as semiconductors. The country now wants to become more independent with scientific and technical innovation. Important special products and patents should therefore come from China.
The government has drawn up a “double cycle” strategy for the next few years. It wants to rely primarily on the "domestic cycle" of production, distribution and consumption, supported by innovation and modernization of the economy. Foreign companies should support this – this is called the second cycle.
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