BEIJING, Oct 01 (Xinhua): Starting from Nov 01 this year, China will slash most-favored-nation tariffs on a total of 1,585 taxable items as the country moves to further open its market, an official statement said on Sunday.
The average tariff rate will be reduced from 10.5 per cent to 7.8 per cent for these items, said the Customs Tariff Commission of the State Council.
The number accounts for 19 per cent of the total taxable items. After the adjustment, China's overall tariff rate will stay at 7.5 per cent, down from 9.8 per cent last year.
Such a rate is slightly higher than that of the European Union but lower than most developing countries, the commission said.
The tariff cuts covered sectors including textiles, ceramics, steel, machinery and some resource-based products and primarily processed goods.
Lowering tariffs to an appropriate level can promote balanced development of foreign trade and opening-up, the commission said.
The move came after China provided zero tariffs on a majority of imported medicines starting May 01 and a reduction of tariffs on vehicles and auto parts as well as some consumer goods starting July 01.
Meanwhile, the Chinese banking system will have a stable outlook over the next 12 to 18 months amid a steady operating environment, according to a report released by credit rating agency Moody's.
The stable assessment took into account China's continued economic growth, which benefited from more accommodative policies and a transition of the economic structure to higher value-added sectors, the report said.
Yulia Wan, a Moody's analyst, said China had shifted toward more accommodative policies, balancing the effort between advancing deleveraging and sustaining growth.
"This situation will result in an operating environment over the next 12-18 months that is broadly supportive of bank credit quality and stable asset quality," Wan said.
The agency's baseline scenario assumes GDP growth of around 6 to 6.5 per cent in the next few years, which should support steady growth in bank loans.
Government support for major banks will remain strong in China to keep public confidence and systemic stability, the report said.
Moody's rates 27 banks in China, of which 24 are commercial.
