As China's economy begins to slow, Beijing is looking to boost imports and will thus be lowering tariffs on a large list of products' from frozen pork to avocado. The ongoing trade war with the United States and its impacts are also a factor that led to this decision. The new tariffs will be in place from the start of the new year.
China's economy is growing at the slowest rate it has ever in the last 30 years and the future predictions only show it slowing down even further. The Chinese Government has vowed to keep the declining growth rate within a reasonable range in 2020 and implement policies that are effective and that look to the future. China will be cutting the tariffs of over 850 products according to the finance ministry.
The tariffs on frozen pork will be reduced from 12% to 8%, avocado tariffs will reduce from 30% to 7%. Even medicine tariffs will be lowered, asthma and diabetes medications tariffs will be lowered to zero. From July 1, China plans on lowering the tariffs of certain information technology products as well.
In related news, President Donald Trump on December 21 told the media that the United States and China would sign their phase one trade deal “very shortly”. Earlier this month, the phase one deal was announced as part of a bid to end the trade war between the magnanimous economies. The dispute has affected world trade adversely bringing down the value of Yen, hitting global growth. The US would agree to reduce some tariffs in exchange for a big jump in Chinese purchases of American farm products in the Phase One deal.
US Trade Representative Robert Lighthizer said on December 15 said that 'phase one' of the trade deal between the United States and China is expected to double the exports to China over the span of the next two years and is 'totally done'. He added that it is close to an end irrespective of the need for translation and revisions to its text. While speaking to an international media outlet, Lighthizer mentioned some 'scrubs' in the text of the deal but it is 'absolutely done'.