China is to cut import taxes on some products, including formula milk and cosmetics. The move aims to balance international trade.
In January, the Ministry of Finance said tax revenues jumped 23 percent year-on-year to more than 7 trillion yuan or about $1 trillion US dollars in 2010, partly boosted by import taxes.
Economist Luo Dingyu said the tax reductions are partly a response to the global financial situation. He said "the cuts are in line with the expectations of the world's major economies. A number of countries have been hoping that an increase in exports to China will help to fuel their struggling economics."
The move comes after just days after the G20 meeting in Paris, at which China came under pressure to increase imports and lower its trade surplus as a means of reducing global trade imbalances.
Data from the General Administration of Customs show that China's trade surplus decreased by about 6 percent year-on-year in 2010.
