China Announces More Tariff Cuts to Spur Spending, Investment
26 September 2018 - 11:48PM
Dow Jones News
BEIJING -- China says it will take another step to cut tariffs
on imported goods, as it seeks to combat a slowing economy amid
escalating trade tensions with the U.S.
China's State Council announced broad details of the cuts late
Wednesday, without saying whether they would apply to U.S.
products. China has previously vowed to exclude from tariff
reductions any nation engaged in a trade fight with it.
Tariffs will be reduced effective Nov. 1 on textiles, paper
products, electromechanical equipment and more than 1,500 other
items, according to the State Council, China's cabinet, which
didn't provide a complete list. The latest list follows a tariff
cut focused on consumer goods that went into effect in July.
By reducing tariffs, China is seeking to make consumer goods and
construction materials more affordable -- helping spur consumer
spending and business investment. The action also follows through
on pledges by President Xi Jinping to make China more open to
foreign products.
Import tariffs vary by product. With the latest cuts, tariffs
for electromechanical equipment will be reduced to 8.8% from 12.2%,
while those for textiles and construction materials will be lowered
to 8.4% from 11.5%, the State Council said.
All those products are targeted in the latest trade sanctions on
U.S. imports.
On Monday, Beijing levied new tariffs on $60 billion of imports
from the U.S. to counter the Trump administration's latest tariff
measure against $200 billion of Chinese products.
The latest tariff cut, together with the tariffs cut in July for
imported consumer goods, is expected to save companies and
consumers 60 billion yuan ($8.73 billion) in China this year, the
State Council said. China's overall tariff level will be lowered to
7.5% from last year's 9.8%, it said.
The State Council also said it would move to cut red tape and
custom fees to facilitate the country's foreign trade.
--Grace Zhu
(END) Dow Jones Newswires
September 26, 2018 09:33 ET (13:33 GMT)
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