A random walk down the world of business economics
Thursday, April 29, 2010
Tariffs and China's trade
In 2001 China became the 143rd member of World Trade Organization (WTO). Since then, the country boosted trade liberalization in all sectors. Till the 1st of July 2006 tariffs on imported vehicles were in the range from 70 to 80 percent, which is a prohibitive level. When becoming the member of WTO, tariffs on imported vehicles, on average, dropped to 25 percent. After China became the member of WTO, import quotas and domestic content requirements were eliminated. In addition, now there are no restrictions on distribution and financing by foreign companies. Here is a link to the working paper published by the European Commission.