Britain’s new tariff policy is conducive to Chinese exports

Britain's new tariff policy is conducive to Chinese exports

A reporter recently learned from the British Embassy in China that from January 2021, the UK will reduce and simplify tariffs on more than 3,500 products, including Chinese products, to facilitate global exports to the UK. At the same time, the newly appointed British trade envoy to China, John Edwards, expressed the hope that trade with China would increase after the new coronary pneumonia epidemic.

Recently, the British government announced a new tariff system, the British Global Tariff (UKGT), to replace the current EU common external tariffs. UK global tariffs will take effect at the end of the Brexit transition period on January 1, 2021. This is the first time the UK has formulated its own tariff policy in nearly 50 years.

The British embassy provided information to reporters from the China Economic Times that for products exported to the UK from China, the new UK global tariffs will reduce cost pressures by reducing the tariffs imposed on imported products entering the UK. Globally, relative to the current number of duty-free products, the global tariffs introduced by the United Kingdom will nearly double this number. For products that are not duty-free, UK global tariffs will reduce and simplify tariffs on more than 3,500 products. The new tariff system ensures that from January 2021, 60% of trade will enter the UK under the terms of the World Trade Organization (WTO) or through existing preferential tariff-free treatment.

British International Trade Minister Elizabeth Tras (LizTruss) said: “This is the first time in 50 years we can formulate a tariff system suitable for the British economy. Our new global tariff system will reduce red tape and reduce the cost of thousands of daily products, Benefit British consumers and families. “

It is worth mentioning that the UK has high expectations for establishing trade and investment partnerships with China. Recently, John Edwards was appointed as the new British Trade Envoy (HMTC) in China. The UK hopes to deepen cooperation with China, increase trade and investment flows, improve market access, and set common goals for future bilateral relations. Wu Qiaowen has extensive work experience in China. He worked at the British Embassy in Beijing and the British Consulate General in Shanghai.

“I look forward to further deepening the UK-China trade relationship. What has happened in the past few months has given us a deep understanding that global cooperation and collaboration are more important than ever. Therefore, we will work with Chinese partners to take advantage of innovation And the power of industry to meet global challenges such as the New Coronary Pneumonia epidemic and climate change. We hope to double the trade and investment flows between the two countries and become a key part of the economic recovery from the current crisis. The Ministry of Trade will support British companies and organizations to enter the exciting market of China and help Chinese investors develop their businesses in the UK. I am very happy that the British government announced the new global tariff system when I took office. It will be a welcome development, “said Wu Qiaowen, British trade envoy to China.

Last year, the bilateral trade volume between China and Britain hit a record high. Britain’s trade volume with China reached 104.5 billion pounds, exceeding 100 billion pounds for the first time. China is the UK’s third largest export market, after the European Union and the United States.

On May 24, CCTV News invited Chinese Ambassador to the United Kingdom Liu Xiaoming, Chinese Ambassador to Russia Zhang Hanhui, and Chinese Ambassador to South Korea Xing Haiming to open the “group chat” mode on the cloud to interpret China’s current foreign policy. According to Liu Xiaoming, Britain advocates free trade and an open economy. The Sino-British economic and trade relations have been severely affected by the epidemic, and companies face problems such as declining orders, obstructed logistics, difficulty in receiving payments, and insufficient manpower. The trade between the two countries fell by 21.5% in the first quarter, and both parties are actively working to recover. The UK very much hopes to work together with China to promote the resumption of production and production as soon as possible and achieve results.

Liu Xiaoming revealed that the arrangements to start after Brexit, including Sino-British free trade negotiations. China-UK financial cooperation is the biggest highlight. We will seize the policy adjustments after Brexit, and recently introduced new commodity tariffs, which will bring opportunities to expand China ’s exports to the UK. Although the Sino-British economic and trade cooperation has been hit by the epidemic, the two sides maintain confidence in the prospects of Sino-British economic and trade relations.

The latest research report released by CCID think tank believes that Brexit has exacerbated the complexity of China’s foreign economic and trade environment. At present, trade negotiations between the United Kingdom and the United States have begun, and the United Kingdom also hopes to reach agreements with major trading partners such as Japan and Turkey.

Brexit caused China’s strategy of using the UK to enter the EU was blocked. After Brexit, it will no longer be the first choice for Chinese companies to enter the EU market. At the same time, after Brexit, the economic strength of the European Union will also weaken, which will fuel the strength of the US-led international trading system.

CCID thinks that the impact of Brexit on China’s manufacturing industry’s “going global” is generally controllable. China’s response strategy suggests that the EU should focus on cooperation, accelerate the conclusion of a new bilateral trade agreement with the UK, and assist enterprises in doing so in advance. A plan to cope with the volatility of the British market.

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