Since joining the World Trade Organization (WTO), the Chinese Communist Party (CCP) has not fulfilled its commitments to reduce tariffs. Recently, the CCP suddenly announced that starting from January 1, 2025, it will implement provisional import tariffs lower than the most-favored-nation rates for 935 items. Experts point out that China’s adjustment of tariffs is an attempt to find new balance and development space amid the current tense international trade relations and geopolitical landscape, while also reducing the risk of external sanctions against its trade practices.
On December 28, the Tariff and Quota Commission of the State Council of the CCP issued the “2025 Tariff Adjustment Plan,” revealing that starting from January 1, 2025, the Chinese authorities will implement provisional import tariffs lower than the most-favored-nation rates for 935 items. These items focus on three categories–supporting technological innovation, ensuring livelihoods, and promoting green low-carbon development.
Under the category of supporting the development of “new quality productivity” led by technological innovation, tariffs on imports such as cyclic olefins polymers, ethylene-vinyl alcohol copolymers, fire engines, and emergency repair vehicles with automatic transmissions will be reduced. In the aspect of ensuring livelihoods in development, tariffs on imports such as zirconium sodium cyclosilicate, virus vectors for CAR-T tumor therapy, and nickel-titanium alloy wires for surgical implants will be lowered. In terms of promoting green low-carbon development, tariffs on imports of ethane, and some recycled copper-aluminum raw materials will be reduced.
Moreover, the plan states that, based on changes in domestic industry development and supply-demand situations, import tariffs on products such as syrup and sugar-containing premix powder, vinyl chloride, and battery separators will be increased within the scope of China’s commitments upon joining the WTO.
Professor Sun Guoxiang from the Department of International Affairs and Business at Nanhua University in Taiwan told Epoch Times on December 30 that over the years, China has been criticized by the WTO and major trading partners for issues such as market access and subsidy policies. By partially fulfilling its commitments now, China aims to reduce the risk of external sanctions against its trade practices.
Economist David Huang from the United States, mentioned to Epoch Times that when China joined the WTO, it promised to reduce tariffs, and now it seems like they are trying to catch up on their commitments a bit late. Beijing hopes to change its image of being unreliable, rogue, and not following commitments in order to ease the tense trade relations with Western developed countries.
He said, “Currently, trade tensions between Beijing and Western developed countries are very intense. China’s active adjustment of tariffs, on the surface, is aimed at optimizing the import structure for China’s re-exports, reducing pressure on China’s current economic downturn, and at the same time, it is conducive to the appearance of reaching a trade settlement with Western countries.”
David Huang believes that China is attempting to improve its global trade image while striving for advantageous positions in global trade. The main exporters of recycled copper and aluminum are the United States, Europe, Japan, and South Korea; therefore, reducing tariffs is beneficial for negotiating with these countries.
The recent reduction of import tariffs on some recycled copper-aluminum raw materials by China has attracted significant attention. Sun Guoxiang said, “China’s policy of lowering import tariffs on recycled copper-aluminum raw materials and increasing tariffs on some petrochemical raw materials is not only due to the need to fulfill WTO commitments but also reflects its policy adjustments under economic transformation and international pressure.”
David Huang stated that China’s adjustment of import tariffs will naturally impact the circulation and prices of global commodities, as well as trade flows. For countries exporting recycled copper and aluminum to China, this is advantageous, but it may also lead to a high dependence on China for countries relying heavily on aluminum and copper in their industrial production chains.
He believes that through free trade agreements, Beijing is seeking a greater say and negotiation leverage in geopolitics and global supply chains, thereby enhancing its influence in Southeast Asia and even in global geopolitics.
Sun Guoxiang believes that China’s tariff adjustments and promotion of free trade agreements will have a significant impact on the global trade landscape and geopolitics. Economically, it promotes diversification in the global trade landscape and elevates the status of emerging markets, but it may also intensify supply chain differentiation and competition.
In terms of geopolitics, China is trying to strengthen its influence in developing countries and strategic regions while escalating confrontations with Western countries. “In the long run, these measures reflect China’s intention to seek a leadership position through economic influence in a multipolar international order, making the global trade system more complex and competitive.”