China Cuts Import Duties on Some Consumer Goods from July 1

China will cut import tariffs on a range of consumer items including apparel, cosmetics, home appliances,and fitness products starting from 1 July, the State Council said on 30 May 2018.

The move, which was announced after a state council meeting led by Premier Li Keqiang, aims to further open China’s consumer market, will force its industries to upgrade and boost competitiveness, the government said in a statement.

Cosmetics, such as skin and hair products, and some medical and health products, will also benefit from a tariff cut to 2.9 % from 8.4 %, the government said in the statement on its official website.

In December 2017, China cut import taxes on almost 200 consumer products including food, health supplements, pharm-aceuticals,garments and recreational goods to 7.7%, on average, from 17.3%, according to the finance ministry.

Beijing says is an effort to improve consumer choice and encourage domestic consumption. Further tariff cuts will be beneficial to opening-up and meet public demand, which will also push forward quality improvements and industrial upgrading,the statement said. It also said related departments should strictly carry out the policy and prevent any price increases by middlemen as a result. The tariff cuts will also benefit global brands looking to increase their presence in China, particularly in cities in its hinterland.

China will work hard to maintain its status as a major destination for foreign investment, and create a fairer, more transparent and convenient investment environment, the statement added.