Chinese consumers benefit from lower prices
30-year-old Xu Qian is the mother of an 18-month-old baby. In raising her first child, Xu makes sure that every product she buys for her daughter is foreign-made. She believes they're of better quality and a higher standard when it comes to safety. The price tag, however, is often higher than those of their domestic counterparts. But lately, she's seeing that change.
Xu Qian said, “Lately, I've noticed that the price of a milk brand produced in New Zealand is getting cheaper. Two yuan (about 0.29 US dollars) for one carton. That's even cheaper than domestic brands. And the prices of some other imported baby products keep going down as well, like clothing.”
Xu Qian is choosing milk for her daughter in the supermarket.
There are many reasons for the lower prices. One of them is China's recent tariff cuts which took place on November 1. It included nearly 1,600 items, ranging industrial products and raw materials. The country's overall tariff rate went down to 7.5 percent, from 9.8 percent in 2017.
Qin Bo, director of import tariff department of Zhengzhou Customs
Qin Bo, director of import tariff department of Zhengzhou Customs said, “According to our statistics, 439 companies in Henan Province will benefit from the November 1 tariff cuts. It's expected that more than 60 million yuan will be saved. It will help save on costs and upgrade the industry.”
Zhang Dandan, purchasing manager of Dennis Department Store, said that “China has kept reducing its import tariffs since it joined the WTO. And because of its multilateral free trade agreements in the Asia-Pacific region, we can get many zero tariff goods from New Zealand, Australia, and Southeast Asian countries. In our supermarkets, we can see more and more cheap foreign goods coming in now.”
The latest move was actually the third time this year China reduced tariffs on imported goods. In May, the country placed a zero-tariff policy on cancer medicine, while in July, it lowered tariffs on a number of daily consumer goods, vehicles, and auto parts.
Workshop of Zhengzhou Nissan Automobile.
Yang Shuyu, vice manager of Zhengzhou Nissan Automobile said, “Zhengzhou Nissan imports auto parts from Japan, Thailand, and other places. So we are really happy to see the tariff cuts on vehicle and auto parts. Since then, we have saved 21 million yuan.”
This year marks the 40th anniversary of China's reform and opening up. Reducing import tariffs will help open China's door to the world.
With similar price points, Chinese customers now have a choice between imported products or domestic ones. In the end, giving people an option will benefit consumers and the country's economy.