The Russian government is reviewing the issue of the abolition of preferential treatment in China. The preferential regime was granted to China on September 13, 1994. According to the system, Chinese products enjoy special tax incentives, in which steel pipe products enjoy a 3/4 tariff concession, even if special tax rates are required for special protection measures against China. Products will not be levied either.
According to sources inside the Russian government, the Russian Prime Minister Zubkov is organizing the Russian Ministry of Economic Development, the Ministry of Industry and Energy, the Ministry of Finance and the Ministry of Foreign Affairs to discuss the issue. Russian experts pointed out that the cancellation of the Chinese preferential system can greatly reduce the impact of Chinese goods on Russian goods, such as rolled steel, steel pipes, and manufacturing of large-scale chemical products. The ex-gratia system is no longer suitable for Russia’s current economic development. It has helped China to pass through tax barriers to direct sensitive areas in Russia.
According to sources inside the Russian government, the Russian Prime Minister Zubkov is organizing the Russian Ministry of Economic Development, the Ministry of Industry and Energy, the Ministry of Finance and the Ministry of Foreign Affairs to discuss the issue. Russian experts pointed out that the cancellation of the Chinese preferential system can greatly reduce the impact of Chinese goods on Russian goods, such as rolled steel, steel pipes, and manufacturing of large-scale chemical products. The ex-gratia system is no longer suitable for Russia’s current economic development. It has helped China to pass through tax barriers to direct sensitive areas in Russia.