China to Adjust Tariff Rates and Tax Items for Certain Goods Starting January 1, 2025

Recently, the Tariff Commission of the State Council released the "2025 Tariff Adjustment Plan" (hereinafter referred to as the "Plan"). The Plan adheres to the general principle of pursuing progress while maintaining stability, promotes autonomous and unilateral trade liberalization, and adjusts import tariff rates and tax items for certain goods. Effective January 1, 2025, the Plan aims to increase imports of high-quality products, boost domestic demand, advance high-level opening-up, and contribute to high-quality economic development.

To enhance the synergy between China's domestic and international markets and resources, 935 items will be subject to provisional import tariff rates lower than the Most-Favored-Nation (MFN) rates in 2025. Key measures include:

1. Supporting technological innovation and new productivity drivers: Import tariffs will be reduced for items such as cyclic olefin polymers, ethylene-vinyl alcohol copolymers, automatic transmissions for specialized vehicles like fire engines and repair trucks.

2. Improving people's livelihoods: Import tariffs will be lowered for products like sodium zirconium cyclosilicate, viral vectors for CAR-T cancer therapies, and nickel-titanium alloy wires for surgical implants.

3. Promoting green and low-carbon development: Reduced tariffs will apply to items such as ethane and certain recycled copper and aluminum materials.

In alignment with industrial development and shifting supply-demand dynamics, import tariffs will increase, within China's WTO commitments, for certain items like syrup and sugar-containing premix powders, vinyl chloride, and battery separators.

To expand its high-standard free trade network, China will apply preferential tariff rates under 24 free trade agreements and trade arrangements, covering imports from 34 countries or regions. Notably, the China-Maldives Free Trade Agreement will take effect on January 1, 2025, initiating tariff reductions. Upon full implementation, approximately 96% of tariff items between the two parties will enjoy zero tariffs.

To support the development of least developed countries (LDCs) and achieve mutual benefits, China will continue offering zero tariffs for 100% of products under all tariff categories from 43 LDCs with diplomatic ties to China in 2025. Additionally, preferential tariff rates will remain in effect for certain imports originating from Bangladesh, Laos, Cambodia, and Myanmar under the Asia-Pacific Trade Agreement and relevant bilateral agreements with ASEAN member states.

To facilitate industrial development and technological progress, new tariff subcategories for items such as pure electric passenger vehicles, canned king oyster mushrooms, spodumene, and ethane will be introduced in 2025. Descriptions for tariff items such as coconut juice and processed feed additives will also be optimized. Following these adjustments, the total number of tariff items will reach 8,960. Moreover, for a more scientific and standardized tariff system, new annotations for domestic subcategories such as dried seaweed, carbon enhancers, and injection molding machines will be added, alongside revised annotations for items like Chinese liquor, wood-based activated carbon, and thermal printheads.