Import Tariffs Reduced

China's import and export policies are being improved to offer more choices in the domestic market. This is as per the decision taken at a recent executive meeting of the State Council. The tariffs on some imported goods, which are in high domestic demand, have been reduced before June on a trial basis. The varieties of imports with reduced taxes will be gradually increased. These measures are meant to expand domestic demand, ensure employment and improve people's lives. They will also edge the domestic consumer goods industry toward medium and high-end levels.

No More Monopoly

China announced detailed regulations to widen the market for bank card clearing services, further opening the financial sector. Starting from June 1, China will implement access management on bank card clearing institutions and issue licenses to domestic or foreign companies qualified to set up bank card clearing institutions, the State Council said in a statement. Companies with a standard bank card clearing system and a registered capital no less than 1 billion yuan ($163 million) are qualified to apply to conduct bank card clearing services in China and should follow the industry rules, said the statement. Clearing companies connect banks, shops and card users together and settle transactions by turning the promise of payment into actual transfer of money from one bank to another. Their profits come mainly by charging commission. 

Deeper Int'l Industrial Cooperation

China's State Council vowed more promotion of industrial integration with other countries for mutual benefit. China will push industrial and equipment manufacturing cooperation with other countries in accordance with their needs, according to a statement released after a State Council executive meeting in May. Cooperation with countries, most notably those along the Belt and Road Asian infrastructure and trade networks, could drive Chinese equipment exports in industries including railways, power, telecommunications, construction materials and machinery, while helping the recipient countries create jobs and stimulate growth, the statement said. Efforts should be made to "foster an industrial cooperation chain" and build a cross-border yuan payment system.

Rural E-commerce Gets Priority

The government is giving priority to developing rural e-commerce in order to create a new pillar for growth in the countryside, the Ministry of Agriculture (MOA) said in a statement on its website. E-commerce is providing rural residents easier access to products and has become an important channel for selling goods. Booming e-commerce is leading to higher rural consumption and attracting entrepreneurial talent to rural areas. For instance, e-commerce giant Alibaba has announced its plan to expand into rural areas. The MOA said it will strengthen resource-sharing, financing and credit services to build a unified, orderly rural e-commerce market.

WTO Contribution

The World Trade Organization (WTO) said that China has pledged to contribute $500,000 to its program aimed at least-developed countries' accessions for 2015. Initiated in July 2011 under the WTO's Aid for Trade initiative, the China Program aims to enable least-developed countries to better integrate into the global economy by increasing their participation in WTO activities and helping those that are not yet members to join the organization."Through this program, China facilitates the accession of least-developed countries to the WTO and supports their integration into the global economy," said WTO Director General Roberto Azevedo.

Loosening Grip

China will further lift controls on the prices of commodities and services in a revised price catalog, said the National Development and Reform Commission (NDRC) in May. Since the current price catalog was published in 2001, nearly 46 percent of the categories and 80 percent of items have seen reductions, said Xu Kunlin, head of the NDRC's Department of Price. The government has relaxed its grip on medicine, tobacco, civil explosion materials and equipment, telecom services, rail services and military products. The proposed revision will limit price controls to just seven major categories - natural gas, water supply, electricity, special medicines and blood, important transportation services, postal services and certain professional services.