Chinese authorities recently announced that China would cut on tariff rates on hundreds of import products including frozen pork and high-tech materials for production by 2020. They claimed that lowering the tariff rates is China's way of destroying trade barriers that prevent the improvement of the Chinese economy.
China has reportedly dwindled down its tariffs to support its local industries and protect them from a series of domestic challenges caused by the China-US trade war. The Chinese Ministry of Finance then announced that it would increase the import of products that help alleviate the country's domestic shortage of goods. Moreover, it also announced that goods for daily consumption are import priorities.
It was also reported that lower tariff rates would be imposed on import frozen pork. Initially, the rate was at 12 percent but is now eight percent after phase one of the China-US trade war was agreed upon. It was also revealed that the cut on the tariff rates is China's way of alleviating the adverse effects of the swine flu epidemic.
The report explained that the swine flu epidemic caused the wiping out of half of the country's pig supply. It caused turmoil over the pork industry in China and that the country is imposing policies that would help lessen the adverse effects of the crisis.
Beijing is currently suffering from a huge supply gap. Pork, being the most popular meet and most affordable of its kind in the market, is slowly recovering from the swine flu issue. Thus, China is cutting back on the tariff rates to promote the higher supply of imported pork into the country.
It was also revealed that China will also impose lower tariff rates on commodities such as certain asthma and diabetes medications, semiconductors in the tech industry, frozen avocados, wood, and some paper products. The said cut on tariff rates was also reported to benefit trading partners of China such as Singapore, Peru, New Zealand, and Pakistan.
It was also uncovered that China is not only cutting back on the tariff rates as its compliance to phase one of the trade deal but also to help the country transition into an open economy.
Earlier this month, it was announced that Beijing and Washington finalized the initial stages of the trade war and that the US agreed to lower the tariff rates on Chinese imports if the latter would increase its purchase of agricultural products from the United States. The same the condition was said to benefit China as it would help reduce the shortage of commodity products within its territory.