China Tax Cuts Bring Hope For British Businesses

Import tariff cuts have been made on nearly 200 consumer goods in China. This could prove to be good news for British exporters.....

The items which will benefit from the discount include a range of consumer goods, including food, alcohol, clothing, pharmaceutical and dairy products.

With reductions averaging just under 10 percent, from 17.3 to 7.7 percent, these 187 goods will become more affordable for Chinese buyers, and more exportable for overseas companies.

Take the example of Scotch Whisky, whose import tariff is set to be cut from 10 to 5 percent.

This will help to make the drink more competitive in the Chinese market which in turn should boost producers in Scotland.

The news has also been welcomed by large corporations such as Nestle of Switzerland and the UK's P&G, who are heavily involved in the market for infant formulas. These will see tariffs fall to as low as 0%.

The cuts should also benefit the Chinese economy, too. A rise in spending has clear economic advantages, notwithstanding the fact that the lower prices in China should encourage more affluent Chinese consumers to spend their money at home, rather than abroad.