The nation plans to adjust tariff rates on some selected products from Jan 1, 2009, the Ministry of Finance said in a statement, adding the country’s general tariff level would be kept at 9.8 percent next year, the same as in 2008, because of the limited scope and margin of lower tariffs. The average tariff for agricultural products will be 15.2 percent and that for industrial items will stand at 8.9 percent, according to the statement. The ministry also said that after the adjustment China was almost at the finish line in respect to honoring the commitments of cutting tariffs made upon joining the WTO in 2001. The nation’s general tariff level has been lowered by more than 35 percent since the country’s accession to the WTO, down from 15.3 percent in 2001 to the present 9.8 percent.

It is expected that China’s move to adjust tariff rates on specific items will support four sectors- agriculture and rural development, technologies that will benefit industrial upgrading and equipment manufacturing, energy and environment conservation, and the industries of textile, steel and fertilizer that are in difficulties:

(1) The nation would impose temporary import tariffs on animal feedstuff and some large farming equipment as well as spare parts. Besides, the country will continue to impose seasonal export tariffs on fertilizers and impose special export tariffs on some compound fertilizers, in order to meet domestic demands first.

(2) The nation would impose lower import tariffs on some technology products, such as ion exchange membrane, key equipment and spare parts that are essential in promoting new technologies. The measures will encourage imports of hi-tech products, which will contribute to domestic upgrading of technology.

(3) The country would also continue to levy lower temporary tariffs on equipment, as well as spare parts, that are useful in conserving the environment, while keeping in place temporary export tariffs on energy- and resource-consuming products, such as coke and wood pulp, and those on energy products, such as coal and crude.

(4) China would levy lower import tariffs on raw materials that have huge demand in domestic production in the form of lower temporary tariffs, which will enable the troubled textile, steel and fertilizer industries to better weather the economic downturn.