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What China's Unilateral Tariff Reductions Signify?
China has again cut its tariffs the second time since the year began to a level from 16.4 to 15.3 percent, a reduction averaging 6.6 percent.
Worth of note are two points to be mentioned here. First, it helps to have translated into practice President Jiang Zemin's promise to lower China's "average tariff level to around 15 percent by 2000" made at the 4th informal meeting of leaders of Asian-Pacific Economic Cooperation (APEC) held in the Philippines in 1996. Second, tariff reduction by China is totally unilateral and all on its own.
This shows that China not only has enough determination and sincerity, but is also fully capable of developing an open economy and of having greater ties with all countries and regions to bring a boost to world economy. Moreover, it points to the fact that China has been active in merging itself into the global economy.
After over two decades' reform and opening up China has established countless ties with the outside world and as a culminating result of these it will have to get all the more involved in globalization since WTO membership is in view. China cut its tariffs by a big margin, a fact not only telling the country's determination and confidence but most importantly it wants all of its economic entities to go into competition with competing with the whole world at an earlier date. It's hard to say whether the reduced tariff is near to a level of WTO entry. But it is the 4th reduction made since the Sino-US bilateral trade agreement was signed by 1999 yearend, and undoubtedly China has made earnest effort to pull itself up against all possible odds impeding WTO entry.
Successive tariff cuts by China have certainly brought challenges in advance to Chinese enterprises. This is a necessary step without doubt and a time to get the country well prepared to challenge various adversaries aside from various possible opportunities offered. Through strenuous conscientious work and with enough attention and patience China will surely have full qualification as a WTO member to win new greater successes on its way ahead.
By PD Online staff member Li Heng
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