Starting next year, China will cut import tariffs on ethane and certain recycled copper and aluminium raw materials, the government announced on Saturday.
The move, according to Reuters, is part of broader adjustments to import tariff categories, aimed at boosting imports of high-quality products, increasing domestic demand, and fostering high-level economic openness.
China’s Ministry of Finance stated that provisional import tariffs below the most-favoured-nation rates will apply to 935 items beginning Jan. 1.
Among the items seeing reductions are ethane and recycled copper and aluminium materials, a step intended to support green and low-carbon development.
Ghana entered into a $10 billion memorandum of understanding (MoU) with China to develop its bauxite industry. As part of this MoU, in 2018, Parliament approved a master project support agreement for a $2 billion facility to finance the construction of priority infrastructure projects by the Chinese firm SynoHydro Corporation. This arrangement involves an exchange where the facility is funded through alumina processed from Ghana’s bauxite deposits.
Although Ghana is not explicitly named, analysts speculate that Chinese mining firms operating in the country could benefit from China’s recent tariff cuts on aluminium. This tariff adjustment could potentially create favourable conditions for the bauxite industry in Ghana and bolster the broader economic relationship between the two nations.
These reductions by Chinese government will also apply to products such as cyclic olefin polymers, ethylene-vinyl alcohol copolymers, and automatic transmissions for specialized vehicles, including fire trucks and repair vehicles. However, the tariff cuts will coincide with an increase in tariffs on certain commodities, including molasses and sugar-containing pre-mixed powders.
Additional tariff cuts will benefit items like sodium zirconium cyclosilicate, viral vectors for CAR-T tumour therapy, and nickel-titanium alloy wires used in surgical implants, reflecting China’s focus on advancing technological and medical innovation.
The announcement also noted the implementation of the China-Maldives Free Trade Agreement, effective Jan. 1, which will introduce further tariff reductions under the bilateral trade pact.
