The annual tariff adjustments are here, what are the highlights for 2025?

At the end of each year, our country will adjust the tariff rates and items of some goods based on the economic and social development situation. The State Council Customs Tariff Commission announced on the 28th the adjustment plan for China's tariffs in 2025. Experts and industry insiders say that this adjustment reduces the import tariffs on some raw materials, medicines, equipment, and components, and adjusts the agreed tariff rates and tariff items, which is conducive to increasing the import of high-quality products, expanding domestic demand, promoting high-level opening up to the outside world, and solidly promoting high-quality development. According to the announcement, in 2025, a provisional tariff rate lower than the most favored nation tax rate will be implemented for 935 items of goods. Among them, reducing the import tariffs on some raw materials, equipment, and components to support the development of new quality production led by technological innovation is a major highlight of this provisional tariff rate adjustment. PetroChina and the China Chemical Industry Federation's Information and Market Department Deputy Director Fan Min noted that this adjustment has added imported provisional tariff rates for goods such as ethane, cycloolefin polymers, and ethylene-vinyl alcohol copolymers. "These goods are very important basic raw materials in the petrochemical industry. Lowering the import tariffs on these goods will effectively reduce production costs for enterprises, promote technological innovation, and drive green and low-carbon development in the petrochemical industry." The import tariffs for special-purpose vehicles such as fire trucks and repair vehicles' automatic transmissions will also be adjusted. "Automatic transmissions are key components for vehicles such as fire trucks and repair vehicles. Lowering their import tariffs will better ensure the production of these special-purpose vehicles, enhance product market competitiveness," said Huang Yonghe, senior chief expert at China Automotive Technology Research Center Co., Ltd. Focusing on people's livelihood concerns is another major focus of this provisional tariff rate adjustment. Journalists, reviewing the annexed table of the announcement, found that China will continue to impose zero tariffs on certain drugs and raw materials for treating cancer and rare diseases and has lowered the import tariffs on goods such as zirconium sodium zirconium silicate, virus vectors for CAR-T cancer therapy, and nitinol wires for surgical implants. Since 2018, China has repeatedly reduced import tariffs on drugs and active pharmaceutical ingredients, with the vast majority of finished drugs, some anticancer drugs, and raw materials for rare disease drugs already being subject to zero tariffs. According to Gao Yuning, vice dean of the School of Public Administration at Tsinghua University, continuously reducing import tariffs on drug raw materials and medical devices related to people's concerns and clinical needs helps better ensure that the people have access to medical treatment and improve and protect people's livelihood. Regarding agreed tariff rates, in 2025, China will apply agreed tariff rates to some imported goods originating from 24 free trade agreements and preferential trade arrangements and from 34 countries or regions. Among them, the China-Maldives Free Trade Agreement will take effect and implement reduced tariffs from January 1, 2025. After the final tariff reduction, nearly 96% of the items on both sides will be subject to zero tariffs. "The 'circle of friends' that will implement agreed tariff rates with China in 2025 will further expand, further demonstrating China's determination to promote the construction of a high-standard network of free trade zones and advance high-level opening up to the outside world," said Gao Lingyun, researcher at the Institute of World Economics and Politics, Chinese Academy of Social Sciences. To help the least developed countries develop and achieve mutual benefits, in 2025, China will continue to provide zero tariff treatment for 100% of the tariff items of 43 least developed countries with which it has established diplomatic relations. "Providing zero tariff treatment to 43 least developed countries demonstrates China's role as a responsible major country. China is willing to share market opportunities with the least developed countries and practice mutual benefits," said Gao Yuning. In addition, it was learned that in 2025, China will add domestic sub-items such as pure electric passenger cars, canned abalone mushrooms, lithium spodumene, and ethane, optimizing the presentation of items such as coconut juice and feed additives. At the same time, dry seaweed, carbon additives, injection molding machines, and other domestic sub-items will be added to the description, while the descriptions of items such as white wine, wood-based activated carbon, and thermal printing heads will be optimized. Tariff items are considered the "language" of trade. "China has added multiple domestic sub-items and optimized the relevant tariff and sub-item descriptions, which is of positive significance for promoting the development of related industries and strengthening import and export management," said Gao Lingyun.