CHINA is to slash import duties on more consumer products, such as suitcases and sunglasses, from the beginning of next year to try to further expand domestic demand following a similar move earlier this year.

    The Ministry of Finance said in a statement yesterday that tariffs imposed on foreign-made goods, including suitcases, bags, clothing, scarves and blankets, would be reduced.

    The cuts in duties were endorsed by the State Council and would become effective Jan. 1, according to the statement.

    The measure was aimed at “giving domestic consumers more choice in shopping while helping the country expand domestic demand,” the ministry said.

    A tariff cut is likely to eventually benefit shoppers as lower costs should ultimately be passed on to consumers.

    The ministry announced in May that it would slash import duties on a clutch of items including leather shoes and skincare products.

    Many more affluent mainlanders have been snapping up foreign-made products such as rice cookers, milk powder and diapers when traveling abroad or ordering them through online e-commerce platforms.

    The cuts in duties are seen as part of the government’s efforts to bolster the economy through stronger consumer spending, rather than relying on massive fixed-asset investment projects.

    Premier Li Keqiang has also proposed an “Internet Plus strategy” to promote the wider use of the latest online and mobile phone technologies to boost online spending by shoppers.

    Also yesterday, the ministry announced to cut some export duties as well. The export tax cuts will apply to steel billet (bars) and pig iron, lowering them to 20 percent and 10 percent, respectively, from the current 25 percent effective Jan. 1. Export tariffs on phosphoric acid and ammonia also will be eliminated.

    Taxes would also be adjusted to encourage imports of advanced equipment and some components.

    While China’s consumer inflation ticked up to 1.5 percent in November from 1.3 percent in October, the increase was largely due to food prices, not an improvement in economic activity.

    Other data this week is expected to show further weakness in industrial output and investment, with a possible pickup in retail sales the lone bright spot. That will reinforce expectations that the government will have to roll out more stimulus in 2016 after six interest rate cuts over the past year and a slew of other measures.

    (SD-Agencies)

    (Read more on P9:

    Steelmakers given lifeline with export tax cut)