China's zero-tariff policy for LDCs is a significant measure of trade

Editor's note: Liu Chunsheng, a special commentator for CGTN, is an associate professor at the Beijing-based Central University of Finance and Economics. The article reflects the author's opinions and not necessarily the views of CGTN.

In today's global economic landscape, globalization has encountered headwinds, with anti-globalization and protectionist sentiments rising, posing numerous challenges to global economic growth and the international trade system. Against this backdrop, the Customs Tariff Commission of the State Council of China has announced that from December 1, all least developed countries (LDCs) that have diplomatic relations with China will benefit from zero tariff on all their tariff lines of products exported to China.

This special preferential tariff is for products within the tariff quota. The tariff rate outside the quota remains unchanged. 

This measure demonstrates China's determination to uphold multilateralism and support free trade in a complex international situation, as well as its responsibility as a major nation.

Since China is the second largest economy and also the largest trader in goods, its economic decisions and trade policies have a broad and far-reaching impact. Despite the current climate of anti-globalization and protectionism, China has persisted in opening up and pursues a multilateralist concept of free trade, injecting strong stability and positive energy into the global economy. This not only helps maintain the stability and smooth flow of global industrial chains and supply chains but also provides vast market opportunities for enterprises from various countries and promotes the optimal allocation of global resources.

As a developing country, China fully understands the difficulties of development and has always assumed its responsibilities, striving to advance together with other developing countries. Increasing trade barriers have made the global trade environment increasingly severe, and world economic growth faces tremendous pressure. So the zero-tariff policy for LDCs brings new hope for global economic recovery.

It will strengthen economic ties between China and LDCs, creating a mutually beneficial and win-win situation. For these countries, the policy will significantly lower the threshold for their products to enter the Chinese market, increase export revenues, and promote the development of related industries.

It will also create more job opportunities and help them overcome poverty, achieve economic growth, and social progress. This policy embodies the solidarity and cooperation between China and LDCs and is a vivid practice of South-South cooperation, contributing to the construction of a more equitable and inclusive global economic governance system.

Looking back at China's journey since joining the World Trade Organization (WTO) in 2001, it has taken the initiative to reduce tariffs multiple times, with the average tariff rate now far exceeding its WTO commitments.

Tariff reductions enable Chinese consumers to purchase high-quality goods and services from around the world at more affordable prices, improving the living standards of the domestic population. At the same time, they also provide broader market space for global trade partners, promoting the prosperity and development of international trade. With its concrete actions, China has proven that it is a firm defender and promoter of free trade, countering the tide of protectionism.

From the perspective of global poverty reduction, the significance of this policy is even greater. LDCs often face numerous difficulties such as poverty, weak infrastructure, lagging industrial development, and insufficient economic growth momentum. The zero-tariff treatment will open up a vast Chinese market for these countries' products, stimulate their endogenous economic development momentum, help them enhance their self-development capabilities, and accelerate the global poverty reduction process. This is not only a positive response to the United Nations Sustainable Development Goals but also a significant contribution China has made to the cause of human development.

For the global economic governance system, China's measure will promote the improvement and development of the multilateral trade system. It will encourage more countries to participate in free trade and multilateral cooperation, jointly building a more open, inclusive, balanced, and universally beneficial global economic governance system.

China has always adhered to the concept of open cooperation and integrated into the world economy. This time, it has once again proven that its development is a process of common development and shared opportunities with the world. While upholding multilateralism, supporting free trade, and assuming the responsibilities of a major country, the measure will also create broader space and a favorable international environment for China’s own long-term development.

China will unwaveringly pursue the path of open development, working together with countries around the world to address global challenges and make greater contributions to promoting global economic prosperity and realizing the vision of common human development. Hopefully more countries will follow China's lead, taking action to jointly resist protectionism and jointly steer the global economy toward a healthier, more stable, and sustainable direction.

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