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China to cut tariffs on Indian cancer drugs: foreign ministry

Press Trust of India  |  Beijing 

and have reached an agreement on reduction of tariffs on Chinese imports of Indian medicines, particularly drugs, the foreign ministry here said today, days after a Chinese movie on a patient highlighted the need for paving the way for import of cheap Indian drugs.

However, it is not yet clear whether has agreed to grant licences to Indian companies to sell drugs in the huge market here, which could be a major step.

About 4.3 million people are diagnosed with annually in China, according to a report of the state-run Central Television. Indian drugs, specially cancer curing medicines, are in big demand in China as they are far cheaper than their western counterparts.

We have seen China and have reached agreement on the reduction of tariffs on medicines. For specifics, I will refer you to relevant competent authorities, Chinese told a here.

We believe expansion of imports and slashing of tariffs on anti-cancer medicines will also in great opportunities for and other countries in the region, she added without providing any further detail.

Earlier in May, China had lifted tariffs on the import of cancer drugs. It was not clear whether Hua was referring to that announcement.

The May announcement had, however, failed to enthuse Indian companies as they cannot legally market their drugs in China as it requires license from the country's and drug administration.

India has been demanding opening of China's IT and as part of measures to reduce a USD 51 billion trade deficit in over USD 84 billion bilateral trade.

While announcing the agreement, Hua referred to a new Chinese film on the plight of a patient, highlighting the pressing need for China to pave the way for import of drugs.

There is a popular movie now in China called 'Dying to Survive'. That movie is about zero tariffs imposition on anti-cancer medicines in China, she said.

Asked whether China would cut tariffs on Indian anti-cancer drugs, she said, "As far as I know, the between China and India is growing continuously, and the two sides have maintained sound communication on promoting the entry of Indian into the Chinese market and carrying out dialogue and exchanges and cooperation on the between China and India".

"The relevant departments have formulated specific measures on developing bilateral cooperation in the between China and India and promoting the expansion of Indian drugs into the Chinese market. It is believed that expanding and deepening China-India cooperation will further enhance the health and well-being of the two peoples," she said.

About the general reduction of tariffs, Hua said, We have decided to expand our imports as well as opening up. This is what China needs in order to uphold the free trade and against protectionism. This is also in keeping up with our own pace of development and opening up."

On July 1, the outcome of the round of negotiations under the Asia Pacific Trade Agreement released a document and we have agreed to slash tariffs by 33 per cent. So according to my understanding the slashing of tariffs by the Indian side is also part of this negotiation...We will also impose a negotiated agreed tariff rate on relevant items in accordance with our regulations, she said.

The six member states of the agreement - China, India, South Korea, Sri Lanka, and - will cut tariffs on a total of 10,312 taxable items, she said.

Hua said China has announced a series of measures to expand its opening up to the outside world, actively expand imports, significantly reduce the automobile parts and consumer goods import tariffs, also zero tariff in anti-cancer drugs.

"This is a positive measure China has taken based on its own development needs. China will continue to expand its opening up in accordance with its own pace, goals and development needs. We believe that China's further expansion of imports and tax reductions will bring huge market opportunities to countries in the region, including India, as well as countries around the world," she said.

Both countries have stepped up negotiations for Chinese imports of Indian rice, sugar and after a meeting between and during the April 28 informal summit.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, July 09 2018. 22:05 IST