The Strategist

China to introduce zero import duties on coal

04/29/2022 - 03:47

According to China's Ministry of Finance, tariffs on coal imports would be temporarily eliminated beginning May 1 in order to support the economy's development.

"China's State Council Tariff Committee has agreed to introduce a zero tariff rate on coal imports from May 1, 2022, to March 31, 2023, in order to safeguard energy supplies and boost qualitative growth," the ministry said in a statement posted on its official website on Thursday.

China's new coal production capacity is expected to hit 300 million tons this year, according to Chinese officials.

Several provinces in China, mostly in the northeast, had power and heating outages in the fall of 2021, owing to a shortage and high cost of coal, as well as rising natural gas costs. The blackouts happened against a backdrop of government initiatives to minimize carbon dioxide emissions into the atmosphere, cut coal consumption, and establish a "green economy."