China Cuts Tariffs on Nonferrous Scrap Materials to Boost Green Development and Domestic Demand

Overview of Tariff Reductions
China has announced a significant reduction in import tariffs for over 900 commodities starting January 2025. This includes several recycled raw materials such as nonferrous metals—primarily copper and aluminum scrap. The move is part of China’s ongoing strategy to enhance domestic demand and accelerate the transition to a more sustainable, low-carbon economy. These tariff cuts aim to lower the cost of production, foster technological innovation, and support industries focused on green development.

Targeted Commodities: Nonferrous Scrap and Petrochemicals
The newly reduced tariffs, which will be set below China’s most-favored nation (MFN) rates, are designed to support a range of critical industries, notably in the nonferrous metal and petrochemical sectors. Recycled copper and aluminum, materials essential for manufacturing and construction, will now benefit from easier import processes. These tariff reductions are expected to ease supply chain challenges for manufacturers who rely on scrap metals as feedstock. Additionally, other petrochemical raw materials like ethane and polymers will also see tariff reductions, reflecting China’s commitment to promoting sustainable growth across multiple industries.

Boosting Green and Low-Carbon Development
China’s focus on recycled materials aligns with its broader environmental goals, as part of efforts to reduce carbon emissions and promote a circular economy. By facilitating access to nonferrous scrap, the government aims to improve the sustainability of the manufacturing sector. As Fan Min from the China Petroleum and Chemical Industry Federation notes, the reduced tariffs will also stimulate technological innovation and contribute to the green development of the petrochemical sector.

Wider Economic Impact
Beyond metals, the tariff cuts encompass a variety of materials, from automatic transmissions for special-purpose vehicles to rare alloys for medical use. This comprehensive tariff reduction package is intended to lower production costs across various industries, from manufacturing to pharmaceuticals, and support China’s long-term growth objectives.