Following up on Chinese Premier Li Keqiang’s pledge to further reduce tariffs on Wednesday, it’s reported that China is planning to cut average tariff rates on goods from the majority of its trading partners as soon as next month. Around 1500 consumer products lines could be included in the list. It is a follow up move to a similar tariff cut back in July on a number of consumer goods. So far, there is no official comments from the Ministry of Finance regarding the topic.
The act is seen as a tactic in the trade war with US that achieve multiple purposes. Firstly, domestic consumptions can be boosted. Secondly, it can should to the world that China is working on opening its markets and it’s consistent with its own claim of advocating free trade. Thirdly, it’s unsure how the cut in tariffs affect US goods as the so-called most favored nation rate also applies. But the act will certainly give extra incentive for Chinese consumers to buy more non-US products.
