China will implement tariff reductions on a range of imported products beginning January 1, 2026, including resource-based commodities and medical supplies, as part of ongoing adjustments to its trade policy.
The cuts, detailed in a statement from the Customs Tariff Commission of the State Council on Monday, aim to lower costs for critical inputs, support domestic industries, and enhance access to advanced technologies amid global supply chain shifts and economic recovery efforts. Key reductions target resource-based commodities such as recycled black powder used in lithium-ion batteries—a vital material for EV and energy storage production—reflecting China’s push to secure sustainable supply chains for its dominant battery sector, which controls over 80% of global manufacturing capacity.
The country will also lower levies on medical products, including artificial blood vessels and diagnostic kits for certain infectious diseases, to facilitate imports of advanced healthcare technologies and reagents, building on post-pandemic priorities for public health resilience. The commission specified that provisional import tariff rates for 935 products will be set below the most-favored-nation rates applied to all World Trade Organization members, granting preferential access to selected goods.
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While the full list of affected items was not immediately released, the adjustments are expected to cover high-tech components, raw materials for strategic industries, and essential consumer goods, continuing a pattern from previous annual revisions that involved similar numbers of products in sectors like machinery, chemicals, and agriculture. The move comes as China balances import facilitation with domestic protectionism.
In 2025, the country has navigated trade tensions—including retaliatory duties on EU dairy (up to 42.7% from December 23) and ongoing U.S. tariff disputes—while promoting high-tech self-reliance under the Made in China 2025 framework. Lowering duties on battery materials supports the nation’s EV dominance and circular economy goals, such as recycling targets under the 14th Five-Year Plan (2021-2025), which emphasize green manufacturing and resource efficiency. Medical cuts align with efforts to bolster healthcare innovation, following investments exceeding 1 trillion yuan in biotech and pharmaceuticals this year.
Analysts interpret the adjustments as strategic signals of selective opening. Some believe the targeted reductions prioritize inputs that complement China’s industrial strengths, reducing costs for manufacturers while maintaining leverage in broader negotiations.
The changes could lower import expenses by 5-15% for affected categories, benefiting sectors like renewable energy with a projected 20% growth in 2026, and healthcare, aiming for universal coverage enhancements. No immediate market reactions were observed in thin holiday trading, but sectors like battery manufacturers and medical importers may benefit from cost savings, potentially boosting stock performance in Shanghai and Shenzhen indices.
Globally, the cuts could ease pressures on suppliers from Australia’s lithium resources and Europe’s medical tech, amid a projected 3.5% rise in China’s imports to $3.2 trillion in 2026. As global trade dynamics evolve—with potential U.S. policy shifts and EU-China frictions—these tariff tweaks underscore Beijing’s calibrated approach to fostering imports that complement domestic strengths without undermining industrial policy objectives, while navigating a slowing economy with 4.7% GDP growth in 2025 and external uncertainties.
The full HS code list and exact rate reductions are expected in supplementary notices from the General Administration of Customs by year-end.
