China Cuts Import Taxes for Personal Computers, Digital Cameras to 10%
Source: Bloomberg NewsChina halved its import tax for some electronics products such as personal computers, paving the way for companies including Apple Inc. and Hewlett-Packard Co. to boost sales in the worlds fastest-growing major economy.
Import duties for computers, digital video recorders and cameras will be reduced to 10 percent from 20 percent from today, according to a statement posted on the Ministry of Finances website today.
The move comes after Chinese President Hu Jintaos visit to the U.S. last week, when he urged closer bilateral ties to accelerate a global economic recovery. The concessions may help overseas companies narrow the lead held by domestic leaders such as Lenovo Group Ltd.
Apple sells the 32-gigabyte version of its iPhone 4 handset for 5,999 yuan ($911) in China, according to its local website. The same model sells for $299 with a 2-year AT&T Inc. contract in the U.S.
U.S. computer makers including Hewlett-Packard and Dell Inc. have struggled to boost their market share in China against Lenovo, the local industry leader. Lenovos market share in China was 28.8 percent in the third quarter, more than double Dells 10 percent and Hewlett-Packards 9.2 percent, according to research company IDC.
Many U.S. companies have begun questioning their long- term viability in China amid regulations designed to promote Chinese companies, according to a report last year by the Be! ijing-ba sed American Chamber of Commerce in China, which counts Intel Corp. and General Electric Co. as members.
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