China agrees to drop tariffs on chips, fab gear, systems
semibiznews.com
A service of Semiconductor Business News, CMP Media Inc.
Story posted 6 p.m. EST/3 p.m., PST, 4/9/99
By Jack Robertson
WASHINGTON -- China has agreed to eliminate all tariffs on
semiconductors, computers, telecommunications and chip equipment
products by 2005 as part of that country's bid for U.S. support of its
admission to the World Trade Organization (WTO). The decision was
announced on Thursday.
Last year, China said it would eventually sign the global Information
Technology Agreement (ITA) to remove duties on high tech products,
but dodged setting any time frame for such action. But during
negotiations on Thursday at the White House, China Prime Minister
Zhu Rongji agreed on a time table for lifting the tariffs in six years.
The U.S. Semiconductor Industry Association has long pressed China
to remove chip tariffs, as have other industry groups representing
manufacturers of computers and telecommunications systems. China
also agreed to phase in new regulations allowing foreign firms to own
up to 51% of telecommunications joint ventures.
The new policy on joint ventures is a sharp reversal of previous
regulations that was to bar some types of telecom joint ventures
completely. Those policies were later revised to allow foreign firms to
hold up to a 35% equity share. China also agreed to rescind pending
regulations that would have forced telecom firms in China to buy
locally rather than import foreign equipment.
China and the U.S. signed an agreement to lock in the high tech trade
concessions, regardless of the outcome of the still on-going
negotiations for a final accord seeking U.S. backing of China's WTO
membership.
Not surprisingly, all U.S. high tech trade associations hailed the China
liberalization achieved so far. "China joining the Information
Technology Agreement will help usher China into the information
age," said George Scalise, president of the SIA, based in San Jose.
"Continued liberalization of Chinese trade and investment rules will
further permit growth in the Chinese market for semiconductors, to
the mutual benefit of U.S. producers and the Chinese technology
industry."
|
