CITIZENS NEWS

China announces tariff cuts on recycled copper, aluminum and key goods to boost green development and domestic demand

By willowt // 2025-01-06

• China announces significant import tariff reductions on 935 items, including recycled copper, aluminum and ethane, effective January 1, 2025, to support green development, technological innovation, and economic openness.
• Key sectors benefit, such as petrochemicals, healthcare, and green technologies, with lower production costs expected to drive innovation and low-carbon transition.
• Healthcare and advanced materials see tariff cuts, improving access to cutting-edge medical treatments and enhancing industrial applications.
• Tariff increases on select goods, like molasses and sugar-containing pre-mixed powders, reflect adjustments based on domestic industrial needs and market dynamics.
• China strengthens global trade ties through the China-Maldives Free Trade Agreement and zero-tariff treatment for 43 least developed nations, reinforcing its role in sustainable global economic development.

In a significant move to bolster green development, expand domestic demand, and promote high-level economic openness, China has announced a sweeping reduction in import tariffs on a range of goods, including recycled copper and aluminum raw materials, effective January 1, 2025. The Ministry of Finance revealed the adjustments on Saturday, highlighting the government’s commitment to fostering sustainable growth and technological innovation. The new tariff plan will apply provisional rates below the most-favored-nation (MFN) levels to 935 items, targeting key sectors such as petrochemicals, healthcare, and green technologies. Among the notable reductions are tariffs on ethane, a critical raw material for the petrochemical industry, and recycled copper and aluminum, which are essential for advancing low-carbon development. These cuts are expected to lower production costs for businesses, encourage innovation, and support China’s transition to a greener economy. In addition to these reductions, tariffs will also be lowered on advanced materials such as cyclic olefin polymers and ethylene-vinyl alcohol copolymers, which are vital for industrial applications. Specialized vehicles, including fire trucks and repair vehicles, will benefit from reduced tariffs on automatic transmissions, enhancing their production efficiency and competitiveness. The healthcare sector will also see significant benefits, with tariff reductions on sodium zirconium cyclosilicate, viral vectors for CAR-T cancer therapy, and nickel-titanium alloy wires used in surgical implants. These measures aim to improve access to cutting-edge medical treatments and ensure better healthcare outcomes for the population. However, not all tariffs are being reduced. The government has announced increases on certain commodities, including molasses and sugar-containing pre-mixed powders, reflecting adjustments based on domestic industrial needs and market dynamics. The announcement also highlighted the implementation of the China-Maldives Free Trade Agreement, which will take effect on January 1, 2025. Under this agreement, nearly 96% of tariff lines between the two countries will eventually be reduced to zero, further expanding China’s network of high-standard free trade agreements.

Stoking the global economy

China’s tariff adjustments are part of a broader strategy to enhance its global trade relationships and support economic development in less developed countries. The country will continue to offer zero-tariff treatment on all tariff lines to 43 least developed nations with which it has diplomatic ties, reinforcing its role as a responsible global economic player. Experts have praised the move as a demonstration of China’s commitment to high-standard opening-up and its proactive approach to addressing global challenges. Gao Lingyun, a researcher at the Chinese Academy of Social Sciences, noted that these measures underscore China’s determination to foster mutual benefits and support sustainable development worldwide. The tariff cuts come at a time when global economic uncertainties and geopolitical risks are on the rise. Despite these challenges, China has reaffirmed its commitment to expanding voluntary and unilateral opening-up, as emphasized during the recent Central Economic Work Conference. By reducing import tariffs on critical goods and materials, China is not only strengthening its domestic industries but also positioning itself as a leader in green and technological innovation. These measures are expected to have far-reaching impacts, driving economic growth, enhancing global trade cooperation, and contributing to a more sustainable future. As the world watches China’s next steps, the latest tariff adjustments signal a clear message: the country is open for business, committed to innovation, and dedicated to building a greener, more inclusive global economy. Sources include: Reuters.com TasnimNews.com ChinaDaily.com

China aluminum globalism green living risk money supply copper progress supply chain trade wars raw materials economic riot import tariff