World Economy

China to Cut Tariffs, Step Up Bank Financing

China to Cut Tariffs, Step Up Bank FinancingChina to Cut Tariffs, Step Up Bank Financing

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, commerce ministry officials told reporters on Thursday.

China runs a vast trade surplus and has been accused by other countries including the US of protecting domestic firms through unfair trade practices including high import tariffs, Reuters reported.

US President Donald Trump is set to visit China next 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 the vice commerce minister, Fu Ziying.

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 commerce minister.

“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 business environment, to promote the healthy and stable development of foreign trade,” said Wang.

Details were not provided on what kind of products would be effected.

 Overseas Investments

China’s state planner issued draft guidelines on Friday for its companies investing overseas, streamlining approval processes for deals while raising oversight for projects in sensitive sectors and countries, the government said.

After years of rapid growth, China’s outbound investment has slumped so far in 2017 as authorities crack down on “irrational” overseas deals which are suspected of being used to bypass capital controls and move money offshore, pressuring the yuan currency.

The draft regulations, released to the public to solicit feedback until December 3, aim to improve oversight, safeguard national security and increase support, according to a post on the website of the National Development and Reform Commission.

Some administrative hurdles, such as a rule requiring that Chinese companies investing over $300 million overseas seek approval from the state planner, would be reduced or removed under the new rules, the post said.

At the same time, the new rules would also increase oversight on investments by overseas subsidiaries of Chinese companies, as well as for investments in sensitive sectors and countries, it said.



Add new comment

Read our comment policy before posting your viewpoints