Japan Will Cancel Some Preferential Tariff Measures To China

Because China's economy is likely to exceed it in 2010

According to Japan's Yomiuri Shimbun, the Japanese government decided in December 28th that it would no longer apply "preferential tariff system" to more than 400 commodities imported from China.

Japan introduced the preferential tariff system in 1971 to promote imported products from developing countries. 3552 of the 5930 commodities that were subject to tariffs in Japan were applied to the system.

In recent years, with the rapid development of China's economy and the increasingly close economic and trade ties between China and Japan, the proportion of Chinese products in total imports has gradually increased.

The relevant departments of the Japanese government believe that the preferential tariff system for Chinese goods is excessive, which violates the original intention of formulating this system. In addition, Japanese politicians say that China is no longer a developing country and therefore can no longer apply this system.

The Japanese government will submit an amendment to the tariff Provisional Measures Act in the general assembly of January 2011, and strive to implement it from April 1st.

After the implementation of the new law, the Chinese goods that can not enjoy the preferential tariff will increase from 13 to 450, ranging from toys, daily necessities, clothing to agricultural products, industrial products and other fields. Some of the Chinese commodities have a market share of over 50% in Japan.

Japanese businessmen are worried that the abolition of tariff preferences in China will lead to higher prices of consumer goods in Japan, and retailers may also shift costs to suppliers in order to control prices.