The Finance Ministry pointed to the cuts being concentrated in products in short supply domestically which, it believes, will prompt local producers to improve quality. The items in the list which, includes baby formula, diapers, electric toothbrushes, medicines, cosmetics, coffee machines and whisky, are part of the broader category of consumer goods which account for roughly 30% of total Chinese imports. Of all 187 tariff reductions, the biggest was on vermouth and similar alcohols, like Martini, which were cut from 65% to 14%. The strangest was the cutting tariffs on electronic toilet seats, where domestic production must be truly appalling from a quality perspective, or markedly insufficient.
Notwithstanding the Finance Ministry’s comments, it raises the question whether China is responding to loud and frequently repeated complaints from Donald Trump about the Middle Kingdom’s unfair trade practices. In 2016, the US trade deficit with China was $347 billion and is expected to rise to around $370 billion in the current year. In October 2017, the US accounted for 70% of China’s total trade surplus. More from...
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