China will cut import tariffs on goods from India, South Korea, Bangladesh, Laos and Sri Lanka from July 1, its central cabinet announced. It will reduce tariffs on soybean from 3 per cent to zero. Chemicals, agricultural products, medical supplies, clothing, steel and aluminium products will also see tariff reductions, according to official Chinese media.
All imported products from these five countries will adapt a tariff rate of the Second Amendment of The Asia-Pacific Trade Agreement, the State Council said.
The announcement comes amidst tariff spat between China and the United States, following pressure by US President Donald Trump to cut down $375 billion deficit in bilateral trade.
India has been pressurising China to open up more for Indian products, specially in information technology and pharmaceuticals, to reduce $51 billion in over $84 billion trade.
During the India-China strategic dialogue in April, Rajiv Kumar, vice chairman of Indian government think tank NITI Aayog, had pitched for export of soybean and sugar to China from India, according to an Indian news agency report.
Early this month, Premier Li Keqiang had announced that China will reduce the average tariff rate for clothing, shoes and hats, kitchenware and sports and fitness supplies from 15.9 per cent to 7.1 per cent from July 1. He has spoken about balanced development of trade by opening the domestic market wider and offering more choices for Chinese consumers. (DS)
