Amid Trade War With US, China To Reduce Tariff On Import Of Over 8,500 Goods From India And Other Asian Countries

What is being called as an outcome of China’s trade tensions with the United States, the dragon has decided to ease trade tariffs on goods imported from fellow Asian countries, the country’s ambassador to India said on Twitter.

This is being seen as China’s way of sending a message to the United States that it can source all the goods that it imported from the US from other countries.

As reported by the Economic Times, this is the second time since its trade tensions with the US that China has reached out to other countries to reduce its growing trade surpluses with them.

According to the daily, trade experts and negotiators see this move as strategic one, since most goods mentioned are the ones which are taxed higher tariffs when they are imported from the US. China has also invited almost 100 countries to take part in the first of its kind import-only fair in November.

Since the US is a major supplier of soybeans to China, tariffs on the import of soya bean from South Korea, Bangaldesh, Laos, Sri Lanka and India will be reduced from the current 3 per cent to 0. India, however, doesn’t have much reason to celebrate as it exports very little oil-cake obtained from soya-bean oil extraction to China.

“The tariff cut will translate into actual benefits only Indian exporters are able to get market access in China. Regulatory clearances need to be simplified as well, especially in pharmaceuticals and agricultural goods,” said director general at Federation of Indian Export Organisations Ajay Sahai as quoted.

The move comes amid increasing trade tensions between India and the US.