BEIJING, April 3 (Xinhuanet) -- Chinese customers are still waiting for savings on imported items, which were expected following further tariff cuts under World Trade Organization commitments, local economic arrangements and preferential agreements between Association of Southeast Asian Nations members.
However, there has been little for consumers to celebrate, as there have been no notable price cuts so far this year.
Among disappointed Chinese is 29-year-old Zhang Li, who was browsing through jewellery shops in Nanjing on Friday, only to see the same high prices.
"I was told the prices would fall," she exclaimed.
But Shen Danyang, vice-president the Chinese Academy of International Trade and Economic Co-operation, warned people not to get optimistic.
"The prices of imports will not drop considerably this year," he said.
"China only lowered its import duties by an average of 0.6 per cent this year, the smallest reduction for the past three years."
Compared with 2002 and 2003, this year's tariff cuts will have a minimal impact on prices, he said.
Moreover, "tariffs are not the sole factors that influence the price of imports," Shen said.
"In some cases, import tariffs play a very minimal role in generating final prices."
Imports' consumption and value-added taxes are the major reasons preventing price reductions.
Taking imported wine as an example, "the 17-per cent value-added tax has offset the profits created by reduced tariffs," said Wang Fubin, sales director with Beijing Oriental Montrose Commerce and Trade Co Ltd. "That is why the price of imported wine has not changed."
China's administrative controls over some imports also buoy their prices, Shen said.
Consumers shopping around for cars were hopeful, as a big price drop was expected to ensue after continuous tariff cuts.
However, "the import licence system has kept car prices high," said Jia Xinguang, chief analyst with the China National Automotive Industry Consulting and Development Corp.
"Import permits, which will not be used from next year, are a limited resource, which keeps prices high."
Overseas manufacturers who want to export cars to China sometimes have to pay up to 140,000 yuan (US$16,867) to buy a permit from speculators, Jia said.
China's imports are mainly luxury or rare goods, which are competitive and generally not able to be produced locally - such as high-end sedans and high-tech electrical products.
"The supply of these products is far from meeting demand," Shen said.
"Their prices are not likely to decrease in the short term."
Fruit from Thailand, which has been entering the Chinese market without a tariff since October, is a prime example of supply outstripping demand.
Prices for tropical fruits in North China remain high due to great demand, vendors say.
As for the Closer Economic Partnership Arrangement (CEPA) framework, under which hundreds of Hong Kong and Macao products are now allowed onto the mainland with no tariffs, it will not influence prices significantly until later in the year, according to market observers.
"Currently, products from Hong Kong and Macao haven't arrived in the mainland en masse," said Shen.
Beijing will not see the batch of CEPA goods on sale until later this month, three months after the free-trade pact was implemented.
Small and medium-sized manufacturers from the two special administrative regions will export more products after they become familiar with the mainland market.
They are still finding it hard to penetrate the mainland market because of a lack of experience, said Aaron Shum, chairman of the Hong Kong Jewellery Manufacturers' Association.
But Zhang's desire to buy cheap, high-quality jewellery may not be that far away, as Yang Zhuyu, president of the Beijing Jiayi Investment Co, predicted that: "Hong Kong and Macao's jewellery makers may start exporting more to the mainland from the beginning of next year."  | 
