Experts expecting more companies to do business with each other

China announced on Oct 12 tax exemptions on certain foreign goods sold at the third China International Import Expo, a win-win move benefiting both global sellers and Chinese buyers, according to experts and business representatives.

Import duties, value-added taxes on imported goods and consumption taxes have been waived on a specified quantity of products across five categories, including machinery, electrical equipment and medical devices, according to a circular jointly released by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration.

Exhibitors who do not fit into any of the five categories can also enjoy the policy for sales under $20,000, the circular read. The number of items that can enjoy the tax relief is subject to a cap. For example, exhibitors of mechanical and electrical equipment can enjoy the exemptions for up to 12 items each, and exhibitors of medical devices a maximum of five.

The exemptions do not apply to goods including tobacco, alcoholic beverages and automobiles.

Both importers and exporters will benefit from the tax exemptions, according to Wang Zhigang, deputy director of the Research Center for Macroeconomics at the Chinese Academy of Fiscal Sciences.

"For China as the importer, the policy is conducive to increasing the volume of imports and optimizing the structure of imports, which helps to promote China's dual circulation development model," he said.

The dual circulation development model, proposed by China to build up its own economic resilience and that of the world's, centers on domestic circulation and promotes the integration of the domestic and global economies.

"Some of the imports eligible for the tax relief are areas where China comes up short," Wang said. "Increasing imports of these products will aid the high-quality development of China's industry and drive advances in production technology.

"For exporters from overseas, the tax exemptions will bring them more orders and help them create jobs."

One of the product categories is medical devices, which Wang thinks reflects the people-centered philosophy of development.

"Importing medical equipment can also help meet Chinese people's needs for high-quality medical services in their daily lives," he added.