China to Reduce Import Taxes to Spur Spending and Growth
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Version 0 of 1. China announced Monday that it would cut import taxes on clothing, cosmetics and some other goods by half as a new tactic to generate more consumer spending and economic growth. Beijing is in the midst of a long effort to reduce reliance on trade and investment to drive economic growth by nurturing domestic consumption. The tariff cuts are scheduled to take effect June 1. “Expanding domestic consumer demand is an important measure for steady growth and structural adjustment,” a finance ministry statement said. The cuts apply to clothing, shoes, skin care products, baby food and supplies and kitchen utensils. Growth in retail sales declined to 10 percent in April, from 10.2 percent in March and below expectations of 10.4 percent. Imports plunged 16.2 percent compared with a year earlier in a sign of weak consumer demand. |