The Ministry of Commerce (MOFCOM) announced on Monday that it will levy a protective tariff of up to 45 percent on imported sugar beyond the tariff quota to offset the negative influence that rising imports have had on domestic producers.
Zhu Danpeng, a food industry analyst, said that 45 percent is a very high level. "With that level of tariff, even if overseas companies enter the Chinese market, they can barely get profits," he told the Global Times on Tuesday.
According to the MOFCOM statement, the tariff will last for three years starting from Monday and will be gradually lowered. From Monday to May 21, 2018, imported sugar beyond the tariff quota will face a protective tariff of 45 percent.
Currently, the Chinese government levies a 15 percent tariff on imported sugar within the quota, according to a report from the National Business Daily on Tuesday.
The MOFCOM made the decision following its investigation into the domestic sugar manufacturing industry after it received an investigation application from the Guangxi Sugar Association in July 2016.
The association found that sugar imports have increased dramatically in recent years, largely squeezing the market share of domestic producers and forcing them to cut prices, which hurt their profitability. According to Zhu, China's actions can't be criticized. He stressed that this can be a strategy as China faces unfair trade barriers in certain overseas countries.
