China’s tariff reductions not result of US trade war

By Huo Jianguo Source:Global Times Published: 2019/12/23 22:03:40

Photo: Xinhua

While China's decision on Monday to reduce tariffs on more than 850 foreign products may attract special attention given the ongoing trade negotiations between China and the US, it is wrong to view the move, which could benefit many countries around the world, only through the lens of the trade war.

The announcement itself and the types of products covered made it clear that this is a part of China's state goals and robust efforts in recent years to open up the massive domestic market to more high-quality foreign products from around the world based on its own market demand and at its own pace. 

China did not lower tariffs on these products because of the US-initiated trade war. And though products from the US will see lower duties, the move will benefit all countries that export products to China.

Broadly speaking, the foreign products that will enjoy reduced tariffs starting on January 1, 2020 can be divided into four categories: farm products such as frozen pork and avocados, medicines, advanced technologies and equipment, and natural resources such as timber.

All of these products are in high demand in China and are supplied by a host of countries other than the US. For example, China is in dire need of pork due to the outbreak of African swine fever. While the US also exports pork to China, it is hardly the only one. Countries such as Kazakhstan, Argentina and Demark have also started to export pork to China.

In summary, this move on Monday further illustrates China's long-stated position that it will continue to open its doors to the world but at a pace set by itself based on domestic market conditions. A trade war would not alter that path.

The author is a vice chairman of the China Society for World Trade Organization Studies.

Posted in: EXPERT ASSESSMENT

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