China to slash import taxes to boost multinationals in the local market
Beijing/Hong Kong/Shanghai — China’s new plan to slash import taxes on a wide range of consumer goods promises to boost the prospects of multinationals in the Chinese market, with everything from Procter & Gamble’s (P&G) baby diapers to Diageo’s whisky becoming more affordable to local consumers. Tariffs for 187 product categories will drop from an average 17.3% to 7.7% after the cut on December 1, the ministry of finance said in a statement on Friday, citing the need to help consumers access quality and specialty products which aren’t widely produced locally. The new policy follows President Xi Jinping’s call at the October Communist Party conclave to meet citizens’ demands for improved living standards and better quality products in the world’s largest consumer market. Foreign multinationals stand to benefit as a growing base of middle-class consumers seek out goods stamped with foreign brands, while the cuts also encourage consumers to spend at home rather than on trips overseas....
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