Question

What are 4 trade policies in China? Please provide reliable sources.

Answer 1

Since becoming a member of the World Trade Organisation (WTO) on 11 December 2001, China has gradually reduced administrative barriers to trade and liberalised its foreign trading system.

1. Import Duties

According to the WTO, China's average applied Most Favoured Nation (MFN) tariff rate has been progressively lowered from 15.3% in 2001 to 9.8% in 2017. The average tariff for agricultural products was 15.6%, while that for non-agricultural products was 8.8%. Anti-dumping and countervailing duties may be imposed on imported goods that are deemed to pose a threat to Chinese national industries. Imported agricultural products subject to tariff rate quotas include wheat, maize, rice, soybean oil, rapeseed oil, palm oil, sugar, cotton and wool..

2. Quota and Licensing

From 2005, China began removing quota and licensing requirements from the majority of imports, and only a limited number of products are now subject to import licensing control. In order to monitor imports, China implements a system of automatic import licensing for certain mechanical and electronic products which can be imported freely.

3. Product standards

All import and export goods listed in the Catalogue of Import and Export Commodities Subject to Inspection and Quarantine issued by Customs authorities, or subject to inspection as laid down in other laws and regulations, must be inspected. Safety licence and other regulatory requirements apply to imports of medicines, foodstuffs, animal and plant products, and mechanical and electronic products.

4. Trade Description and Labelling

All goods sold in China must be labelled in the Chinese language with a true description of their contents, grades and specifications as to quantities where applicable, the production date and expiration date (in particular for food-related items and pre-packaged foods), and explanatory warnings of any potential hazard associated with the products.

5. Free Trade Agreements

Currently, China has signed and implemented 17 free trade agreements (FTAs), while 13 FTAs are in negotiation and another 10 are under consideration

Sources are Books on International Trading and Finance and the Hongkong Economy Research website.