In 2003 China will adopt a zero tariff policy for 110 import items
including fax machines, mobile phones, intercoms, pagers, computer
mouse and keyboards, said China's Customs authority. In addition,
tariffs on imported automobiles will be cut from 52.5 percent to
43.3 percent. The prices for a number of import goods will be
reduced, benefiting Chinese consumers.
Over the past year, China has lowered its tariff average to 12.7
percent, in line with its WTO commitments. In 2002, Beijing city
reduced import tariffs on 29 categories of goods such as electronic
products, cars and electrical machinery and equipment, and scraped
tariffs altogether on 16 categories of goods including electronic
products and computer accessories. In 2003 China will further
reduce tariffs, and by 2007 the average rate of tariffs will be
just 10 percent. Within the next three years, information products
will be free of customs duties. From next year the import quotas
currently imposed on some products will be lifted. For example, the
quota on photographic equipment will go from US$14 million worth to
zero.
A
salesperson in the Zhongguancun Center for Electronic Products in
Beijing revealed that prices for a number of imported IT products
have been decreasing since the introduction of tariff exemptions.
An imported laptop now costs 15,000 yuan (US$1,812) where as in the
past the same product would have cost an additional 5,000 yuan
(US$604). Legend and Founder computers, two local brand names, are
also cheaper as the cost of imported parts, such as CPUs, have been
reduced.
Smuggled cameras are often found in Chinese markets because of
strict quota restriction. In 2003, when quotas are removed, a
greater variety of photographic goods will enter the Chinese
market. Many foreign-brand name cameras such as Nikon and Canon
will see lower prices.
2003 will also be a good year for automobile enthusiasts as car
tariffs are reduced by a further 9 percent. In 2002, China reduced
tariffs on imported car parts and components from 35.7 percent to
just 6 percent and tariffs on car engines from 31 percent to 18
percent.
Yet an expert from the Beijing WTO Research Consultation Center
predicted that tariff reductions will have little impact on the
telecommunications market made up of mobile phones, telephones and
pagers, since many foreign brands such as Nokia and Ericsson have
already localized production in China, and many China-produced
products have been exported overseas. But certainly prices for
high-end telecom products will fall. As for Chinese enterprises,
zero tariffs will undoubtedly present rigorous challenges. 2003
will be a crucial year for them. They will have to learn how to
survive and thrive amongst intense competition with their foreign
counterparts.
(China.org.cn December 24, 2002)