China proposes reducing tariffs on luxury imports

China is proposing to reduce tariffs on some luxury goods, despite political resistance due to concerns over the country’s widening wealth gap, the Wall Street Journal reported. China’s tariffs on luxury products currently add on an extra 10-30% to the price of imported goods like handbags, wine, watches and cosmetics. The planned reductions would be a boon for luxury goods companies and bolster imports. A spokesman for the Ministry of Commerce, Yao Jian, said in state-owned media that key ministries are making the proposal to China’s cabinet and the reductions are “just a matter of time.” Slashing tariffs would mainly benefit wealthy consumers, and the government’s proposed move is likely to attract criticism for serving the needs of the rich instead of narrowing the wealth gap.