Recently, the Customs Tariff Commission of the State Council issued the "2025 Tariff Adjustment Plan" (hereinafter referred to as the "Plan"). The Plan, which will be implemented from January 1, 2025, will help increase the import of high-quality products, expand domestic demand, promote high-level opening-up, and solidly promote high-quality development.

The adjustment reduces the import tariffs on some raw materials, medicines, equipment and parts, etc., and adjusts the agreed tax rates and tariff items, which is conducive to increasing the import of high-quality products, expanding domestic demand, promoting high-level opening-up, and solidly promoting high-quality development.

Import tariff adjustment in 2025: Enhance the linkage effect of domestic and foreign market resources

In order to better connect and utilize the domestic and international markets and resources, in 2025, China will implement a provisional import tax rate lower than the most-favored-nation tax rate for 935 commodities. This policy aims to support scientific and technological innovation, ensure the improvement of people's livelihood, and promote green and low-carbon development by optimizing the tariff structure.

Support scientific and technological innovation and lead the development of new quality productive forces

First of all, in order to promote scientific and technological innovation and the development of new productive forces, the government will reduce import tariffs on a series of high-tech products and technical equipment. These include advanced materials such as cyclic olefin polymers and ethylene-vinyl alcohol copolymers, as well as key components such as automatic transmissions for special-purpose vehicles such as fire trucks and repair vehicles. These measures will help introduce advanced technology and promote industrial upgrading.

Safeguard and improve people's livelihood

Second, ensuring and improving people's livelihood in the process of development is an important policy orientation. To this end, tariffs on health and well-being goods such as sodium zirconium cyclosilicate (used to treat hyperkalemia), viral vectors for CAR-T cancer therapy, and nitinol wire for surgical implantation will be reduced. The aim is to bring more high-quality medical products and services to the public and improve public health.

Promote green and low-carbon development

In addition, in response to the national green development strategy, the government will reduce import tariffs on ethane and some recycled copper and aluminum raw materials to encourage the development of clean energy and circular economy. This will not only help reduce environmental pollution, but also promote the effective recycling of resources and help achieve the goals of carbon peak and carbon neutrality.

In addition, according to the changes in the development needs and supply and demand of domestic industries, and within the scope of China's accession to the World Trade Organization, the government will also appropriately increase the import tariffs on some commodities such as syrup and sugary premix, vinyl chloride, and battery separators, so as to protect and support the healthy development of domestic related industries.

Tariff Adjustment in 2025: Deepening Free Trade and Promoting Common Development

Expand the global network of high-standard free trade zones

In order to expand the network of high-standard free trade zones facing the world, in 2025, China will implement the agreed tax rate on some imported goods originating in 34 countries or regions under 24 free trade agreements and preferential trade arrangements. Among them, the China-Maldives Free Trade Agreement will officially enter into force on January 1, 2025 and start the process of reducing tariffs. After the final completion of the tariff reduction, nearly 96% of the tariff items of the two sides will achieve zero tariff, further deepening bilateral economic and trade cooperation.

Support the development of the least developed countries to achieve mutual benefit and win-win results

In order to help the least developed countries achieve sustainable development, China will continue to grant zero-tariff treatment to 100% of the products under tariff lines to the 43 least developed countries that have established diplomatic relations with China in 2025. In addition, in accordance with the Asia-Pacific Trade Agreement (APTA) and the intergovernmental exchange of letters with relevant ASEAN member states, China will continue to implement preferential tariffs on some imported goods originating in Bangladesh, Laos, Cambodia and Myanmar to boost the economic development of these countries.

Promote industrial development and scientific and technological progress

In order to better serve the needs of domestic industrial development and scientific and technological progress, in 2025, China will add pure electric passenger cars, canned oyster mushrooms, spodumene, ethane and other domestic sub-items to the tariff, and optimize the expression of the names of tax items such as coconut water and feed additives. After this adjustment, the total number of tariff items will reach 8,960.

At the same time, in order to promote the scientific and standardized tariff system, in 2025, new annotations of domestic sub-items such as dried laver, carburizers, and injection molding machines will be added, and the expression of domestic sub-items such as liquor, wood activated carbon, and thermal printheads will be optimized to ensure that the tax policy is more transparent and easy to understand.

What information do investors need to pay attention to?

The release of the 2025 Tariff Adjustment Plan provides important policy guidance for investors, affecting the cost structure, market competition and investment environment of many industries. Investors should focus on the following areas when evaluating this policy change:

Supporting scientific and technological innovation: Reducing import tariffs on high-tech materials such as cyclic olefin polymers and ethylene-vinyl alcohol copolymers, as well as automatic transmissions for special-purpose vehicles such as fire trucks and emergency repair vehicles, will help promote technological progress and industrial upgrading in related fields. Investors can focus on whether companies in these areas can benefit from this, for example by reducing costs or improving market competitiveness.

Protection and improvement of people's livelihood: Reducing import tariffs on medical and health products such as sodium zirconium cyclosilicate, viral vectors for CAR-T tumor therapy, and nitinol wire for surgical implantation will promote the development of high-quality medical services. For investors in the pharmaceutical and health industry, this is a positive sign that better products and services may enter the domestic market.

Green and low-carbon development: Lower import tariffs on ethane and some recycled copper and aluminum raw materials, and encourage the development of clean energy and circular economy. This is beneficial for the environmental technology and renewable energy industries, especially those focused on energy conservation and emission reduction. Investors should be aware of the growth potential of such companies under the new policy.

Tariff adjustment for traditional goods: Increasing import tariffs on goods such as syrup and sugary premix, vinyl chloride, and battery separators may have a negative impact on food processing, chemical and other industries, increasing the cost of raw material procurement. Investors need to assess the response strategies of the affected companies and their impact on profits.