China lower some taxes to promote the consumption

Will the Chinese lose their status of tourists spending more during their trips abroad ? So far, they take advantage of their trips to the full of products heavily taxed in China. But this habit could change, as the country has announced the reduction of tariffs on 187 products : baby food, cosmetics, some clothes, alcohol…

The import tax on these products will increase from 17.3% in average at 7.7 % on the 1st of December. This measure, announced on Friday 24 November by the ministry of finance, should improve the offer available to chinese consumers. It is also presented as a token of the efforts made by the country to open its domestic market to foreign companies.

At a Congress of the communist Party, in October, the president, Xi Jinping, promised to meet the demand of consumers who want access to products of better quality. Even if some local brands are emerging, imported products enjoy a reputation for quality in the eyes of Chinese scalded by scandals repeatedly.

“The consumer demand is on the rise. These lower rates are intended products in very high demand in China, which is closely related to the everyday life of people and which are not generally produced nationally, ” explained the ministry of finance on its website.

“Advancing international trade ”

Mr. Xi had also promised “to greatly relax the market access conditions” chinese for foreign companies, while Europeans and Americans accuse regularly the country of protectionism. In fact, China had already announced a first cut taxes just before the visit to Beijing of us president, Donald Trump, at the beginning of November.

“The goal is threefold : to strengthen the consumption, reform the chinese economy continues to open…

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