BEIJING (Reuters) - China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year as Beijing looks to boost imports amid a slowing economy and a trade war with the United States.
Next year, China will implement temporary import tariffs, which are lower than the most-favoured-nation tariffs, on more than 850 products, the finance ministry said on Monday. By comparison, 706 products were taxed at temporary rates in 2019.
The tariff changes were made to "increase imports of products facing a relative domestic shortage, or foreign speciality goods for everyday consumption," the ministry said in a statement on its website.
China and the United States cooled their drawn-out trade war earlier this month, announcing a Phase 1 agreement that would reduce some U.S. tariffs in exchange for more Chinese purchases of American farm products and other goods.
The finance ministry said the tariff rate for frozen pork will be cut to 8% from the most-favoured-nation duty of 12%, as China tries to plug a huge supply gap after disease decimated its hog herd.
However, meat industry insiders in both China and the United States said the measure did not appear to affect the retaliatory tariffs in place for U.S. pork.
Beijing has waived extra tariffs on some U.S. soybean and pork cargoes in recent weeks, in a goodwill gesture to Washington, as the two countries move closer to signing a trade deal.
The tariffs on U.S. pork, currently up to 72%, will go down to 68% when the tax rate cut takes effect in the new year.
"U.S. pork will remain at a significant disadvantage compared to competing products until China's retaliatory duties are addressed," the U.S. Meat Export Federation said in a statement.
But the measure will help boost China's overall pork imports and ease the domestic shortage, analysts said.
"This is part of the Chinese government's serious effort to increase pork supplies. It will definitely help," said Jim Huang, chief executive at China-America Commodity Data Analytics.
The tax rate cut applies to frozen hams, shoulders and cuts of swine, with bone in, and other frozen meat of swine. It does not affect other pig products, including offal, carcasses and chilled pork, according to the government notice.
An outbreak of African swine fever that began in August last year has nearly halved China's pig herd, official data showed, sending pork prices soaring to record levels.
Beijing has issued a series of measures to boost pig production, while increasing imports of various meats to meet domestic demand.