China will apply provisional import tariff rates lower than the most-favored-nation rates on 935 items starting January 1, 2025, marking a significant shift in the country’s tariff strategy. This adjustment is part of China’s annual tariff review, aimed at increasing the import volume of quality products and supporting the nation’s pursuit of high-level opening-up. Market observers and business leaders anticipate that this move will unleash further market potential and create broader opportunities for international businesses.
Reducing Tariffs on Critical Components and Advanced Materials
One of the key areas of focus in the new tariff plan is the reduction of duties on critical components and advanced materials. This includes items such as computer-controlled hydraulic cushions for presses and heteromorphic composite contact strips. By lowering tariffs on these products, China is easing the cost burden on its high-end manufacturing sector, accelerating the development of its modern industrial system, and supporting its ongoing industrial upgrades.
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Supporting the Green Transition
China’s tariff adjustment plan also aims to support the country’s green transition. Tariffs will be reduced on essential resources for green technologies, such as recycled black mass for lithium-ion batteries and unroasted iron pyrites. These reductions will not only help China move towards its environmental goals but also foster the growth of green industries by lowering the cost of critical materials needed for technological innovation and sustainability.
Improving Public Health through Tariff Reductions
In addition to its focus on industrial and environmental growth, China’s tariff adjustment plan will benefit public health initiatives. Tariffs on medical items like artificial blood vessels and diagnostic kits for certain infectious diseases will be lowered. This move reflects China’s efforts to enhance its healthcare infrastructure and increase access to vital medical technologies for its citizens.
Building Confidence for Long-Term Investment
Anna An, president of Henkel China, highlighted that the evolving policy environment in China is providing greater clarity and confidence for long-term investment. Henkel has committed to expanding its operations in China, particularly by introducing more high-tech products and scaling up local manufacturing efforts. An emphasized that the Chinese market remains resilient and holds substantial growth potential, especially in domestic demand and innovation-driven sectors.
Boosting Domestic Market Potential
Zhou Mi, senior researcher at the Chinese Academy of International Trade and Economic Cooperation, pointed out that the annual adjustments to China’s tariff rates send clear policy signals to both domestic importers and foreign exporters. This advance notice allows companies to plan effectively, reducing uncertainty and enabling better decision-making regarding supply chain management.
Impact on Domestic Industry and Supply Chains
Xiao Jinfeng, foreign trade manager at Asia Vital Components in Guangdong, explained that the tariff reductions will lower costs for essential components like storage-battery parts and industrial valves. These reductions will help companies invest in new production lines and expand into emerging markets such as advanced liquid-cooling solutions for cloud-based AI data centers.
Luo Zhiheng, chief economist at Yuekai Securities, emphasized that the timely reduction of tariffs on critical raw materials, high-end equipment, and advanced products will help ensure the smooth operation of China’s industrial and supply chains, aligning with national strategic priorities.
Fostering Technological Progress and Circular Economy
Looking ahead, China plans to introduce new national tariff subheadings in 2026 for cutting-edge technologies, including intelligent bionic robots and bio-aviation kerosene. These efforts reflect China’s commitment to fostering technological progress and strengthening its circular economy. As a result, the total number of tariff lines will rise to 8,972 in the coming years.
