China pledges to cut import tariffs ahead of Trump visit
November 8, 2017 Category China News Round-up, Weekly
China will lower tariffs and step up bank financing to support more imports as the country’s massive trade surplus has a negative impact on its citizens, Vice Minister of Commerce Fu Ziying said. China runs a vast trade surplus and has been accused by other countries including the United States of protecting domestic firms through unfair trade practices including high import tariffs. U.S. President Donald Trump is set to visit China this week, with the trade relationship expected to be a major topic of discussion.
“A trade surplus that is too large has a negative impact on Chinese people’s enjoyment of national wealth. Only by reducing the trade surplus can Chinese people feel a greater sense of gratification,” said Fu. China will lower import tariffs on consumer products, encourage banks to expand import financing and increase imports of advanced technological equipment and key components, said Wang Bingnan, another Vice Minister of Commerce. The Chinese government will amend the Catalog of Encouraged Technologies and Product Imports, and expand imports of advanced equipment and key manufacturing components.
“The Ministry of Commerce and other departments will further improve and refine policies, and work to create an environment that is fair, law-based, international and simplified, to promote the healthy and stable development of foreign trade,” Wang said. Details were not provided on what kind of products would be affected. U.S. President Donald Trump called the U.S. trade deficit with China “embarrassing” and “horrible” ahead of his trip to five Asian countries, including China.
According to the Ministry of Commerce, U.S. exports to China grew by an average of 11% over the past decade, much higher than the overall growth of 4% in U.S. exports during the same period.
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