Plummeting Import Tax Means Big Business for China's Jewelry Market

As China’s jewelry import tax drops by an average of 20.7 percent, opportunity knocks for foreign luxury brands looking to boost mainland China sales According to a recent announcement by the Ministry of Finance of People’s Republic of China, the Chinese government is set to reduce import tax on 18 categories of jewelry, effective from July 1 this year.  The announcement comes after jewelry products were re-categorized by the government, now listed under “general consumer goods” instead of “luxury” According to Liang Weizhang, Head of Guangdong Diamond Trading Center, this change could signal that the government is attempting to boost purchasing power and increase Chinese demand This would be likely to have huge implications for foreign jewelry brands.

Lower import tariffs could mean the cost of foreign jewelry brands in China drops significantly, forcing domestic brands to adjust their prices accordingly. According to Shi Jongyue, Secretary-General of the Gem & Jewelry Trade Associate of . Source