| Gov't cuts tariff on electronic imports |
| Tuesday,October 09,2007 Posted: 15:33 BJT(0733 GMT) china daily |
BEIJING, Oct. 9 -- The import tariff on audio and video products and other electronic publications has been cut, the Ministry of Finance said on its website Monday. The government reduced import tax from 17 percent to 13 percent on recorded cassettes, compact and digital video discs and floppy discs, effective on Sept. 15. Analysts said the move aims to encourage imports of these products in a bid to help reduce the country's trade surplus and rebalance its international payments. Last year, China imported 30.79 million U.S. dollars worth of these products, an increase of almost 80 percent on the previous year. Based on that figure, the reduced tax rate may lead to a loss of about 1.2 million dollars in tax revenue, experts said. "It is part of the country's efforts to encourage imports and promote the balance of international payments," said Chen Jijun, a senior analyst with Beijing-based CITIC Securities. China had accumulated foreign exchange reserves of 1.41 trillion dollars by the end of August, according to government officials. The trade surplus has become a major contributor to the expanding reserves. Chen said the move should help reduce the surplus, given China mainly imports audio, video and electronic products from developed countries - the source of most of its trade surplus. China has cut the import tariff on key equipment and reduced export rebates on some energy-intensive products in its all-round macroeconomic regulations this year designed to narrow the trade surplus. In August, China registered a trade surplus of 24.98 billion dollars, up by 32.8 percent. But the growth rate was 48.1 percentage points lower than the January-July period. "The regulatory measures have worked to some extent," Chen said, adding that imports are also growing steadily. China's imports in August were 86.38 billion dollars, a record high on a monthly basis. But he warned that if China does not change its economic structure, it will be difficult to substantially reduce the trade surplus. China's low-cost labor and resources are behind the fast increase in the country's exports. Many foreign companies have shifted their manufacturing to China to take advantage of low local costs, and they are driving the country's strong export industry, he said. He said China should raise resource prices as a fundamental method to rebalance the economy. |
All articles marked with "Article type: Original" posted on the website of the Ministry of Commerce and its sub-sites are copyrighted by this Website and its sub-sites. Any reproduction or use by any other websites, media or individuals must be attached with a clear indication of "Source: Ministry of Commerce Website".
All articles posted on this website or its sub-sites marked with "Article type: reproduced" or "Article type: translated" and "Article type: redistributed" come from other media, and are provided solely for the user's information, which does not mean this Website or its sub-sites endorse the ideas thereof or assume any legal liability or responsibility for their authenticity. Any other media, websites or individuals must maintain the source of information indication on this Website or its sub-sites when using the information, and shall assume legal liability for the use.
