Yu Xinyan: The new round of tariff adjustments is highly in line with China's economic transformation

The State Council Tariff Commission released the "2026 Tariff Adjustment Plan" last week, which clarifies that from January 1 this year, China will implement temporary import tax rates lower than the most favored nation tax rate for 935 imported goods. From the perspective of tariff policy arrangement, this is an annual institutional adjustment, but combined with the complete tax item structure, it is not difficult to find that this round of adjustment is not simply expanding the import scale, but a structural arrangement made around industrial upgrading, green transformation, and improvement of people's livelihood. Against the backdrop of a complex and volatile global trade environment with increasing uncertainty, implementing a more scientific and standardized tax system and carrying out targeted and rhythmic opening up is another opportunity gift that China has brought to the world at the beginning of the new year.

Among the 935 goods subject to the provisional tax rate, a considerable portion are not directly aimed at end consumers, but are mainly used as key inputs in production, manufacturing, public services, and other processes. The number of goods involved in advanced manufacturing, equipment, key components and other industrial fields has reached over a hundred, and chemical materials and industrial basic raw materials also account for a considerable proportion. This indicates that the focus of this tariff adjustment is to improve the supply structure and enhance the operational efficiency of the industrial system by reducing key input costs. This orientation is highly in line with the objective demands of China's current economic transformation.

In recent years, with the development of China's manufacturing industry towards high-end and intelligent, the demand for high-quality intermediate inputs from enterprises has been continuously increasing. Relevant industry practices have shown that in high-end equipment, new materials, and other fields, intermediate inputs often account for a relatively high proportion of enterprise production costs. By implementing structural tax reductions and introducing more high-quality supply, it will help alleviate cost pressures for enterprises, enhance the feasibility of technological upgrades and investment expansion. This approach not only does not weaken the local industrial foundation, but also provides practical support for independent innovation and industrial chain resilience through the path of "introduction absorption enhancement".

Green and low-carbon transformation is another clear mainline of this tariff adjustment. From the perspective of tax structure, the adjustment of resources, energy, and circular utilization related goods forms a clear framework, focusing on key links such as mineral security, supply of energy intermediate products, and utilization of renewable materials, which are widely used in the fields of new energy, energy storage, and green manufacturing. In the past year, with the acceleration of global green transformation, the supply of related raw materials and key inputs has become increasingly tight. Lowering tariffs not only provides more stable investment guarantees for the development of domestic green industries, but also objectively promotes the more efficient flow of green resources and technologies globally, which helps to reduce overall transformation costs.

In the field of people's livelihood, tariff adjustments also have a clear "people-oriented" policy orientation. Among the 935 products, there are nearly a hundred products directly related to medicine and health, public health, and medical security, covering anti-cancer drugs and rare disease drug raw materials, vaccines, immune products, as well as some medical devices and diagnostic supplies. This type of product is not a general consumer good, but an important component of the public health system and the construction of a healthy China. By reducing import tariffs and introducing more high-quality medical products, it not only helps to reduce the burden on residents and improve people's livelihoods, but also effectively improves the supply structure, enhances accessibility, and promotes sustained progress in quality and technology in domestic related industries.

It is worth noting that this tariff adjustment is not a one-way "only lowering without adjustment". According to the development of domestic industries and changes in supply and demand, some goods such as micro motors, printing machines, and sulfuric acid have had their temporary import tax rates cancelled and their most favored nation tax rates reinstated. This dynamic adjustment arrangement reflects a cautious balance between expanding openness and enhancing the endogenous driving force of the domestic circulation, and also helps to maintain the stability and predictability of the policy environment.

As a key participant in global trade, China's tariff adjustment signifies its commitment to promoting inclusive development of global trade through both market and institutional arrangements. On the one hand, as one of the world's largest commodity trading countries, China's stable demand for high-quality intermediate goods, green inputs, and medical products will continue to provide important market opportunities for relevant countries and enterprises. On the other hand, China continues to maintain the implementation of agreed tariff rates for some trading partners through free trade agreements and preferential trade arrangements, while retaining zero tariff treatment for 100% tariff items of products from 43 least developed countries. This will help enhance the inclusiveness of the global trading system and assist more developing countries in further integrating into the international division of labor system.

Against the backdrop of frequent politicization and instrumentalization of tariffs by certain countries, China has demonstrated different development logics through structural tax reductions and institutional arrangements. China adheres to the multilateral trading system and existing rules framework, and continues to promote targeted and rhythmic opening up. This kind of openness is neither a short-term stimulus nor a one-way concession, but an institutional choice embedded in long-term development strategies. By continuously promoting tariff adjustments under the rules, China emphasizes the stability of its open approach and the continuity of its policy arrangements.

At the beginning of the new year, China's tariff adjustment still reflects a clear and stable development direction. In the complex and ever-changing international environment, China insists on using tariffs as a traditional policy tool to optimize structure, improve supply, and stabilize expectations, which not only expands the space for its own high-quality development, but also provides rare certainty for the operation of global trade and industrial chains. In a world of rising uncertainty, this rule-based and long-term open choice has practical significance beyond short-term fluctuations and fully demonstrates China's responsibility as a contributor to global development. (The author is a professor at the School of International Economics and Trade, University of International Business and Economics)