AsiaTimes - 01 December 2004

China to lower tariffs from 10.6% to 10.1% in 2005

BEIJING - China will lower the general tariff level from 10.6% in 2004 to 10.1% in 2005 so as to keep its commitments to the World Trade Organization.

Among them, the tariff on industrial products will fall from 9.8% to 9.3%, and the tariff on farm produce from 15.8% to 15.5%. The tariff reduction will cover more than 1,000 imported commodities to different extents, with some information technology products totally exempt.

The import tariff for complete vehicles will be cut down to below 30%, and that for auto parts and components to 13% on average.

Informed sources disclosed that China will open its banking industry to foreign investors in another four cities: Shantou, Ningbo, Shenyang and Xi'an, in addition to Shanghai and another 14 cities, as it has promised.

Foreign financial institutions will be allowed to provide yuan (RMB) service to Chinese enterprises.

From January 1, 2005, to July 1, 2006, China will fully open to foreign competition the industries it has promised the WTO to ensure fair and open trade.

(1 Dec.04 - Asia Pulse/XIC)