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BEIJING - China will raise an import tariff on liquid crystal display (LCD) panels to 5 percent starting on April 1, the Ministry of Finance said on Thursday.
China has previously placed a 3-percent tax on imported LCD panels of 32 inches or more (excluding backlight modules) in size in order to spur development in the country's booming television manufacturing sector, which is heavily reliant on LCD panel imports.
The increased tariff comes at a time when several domestic LCD production lines have gone into operation, changing the market's dynamics.
The tariff will have a positive effect on Chinese LCD panel and television manufacturers, as it will increase their competitive edge, analysts said.
Meanwhile, to encourage imports of key components, China will impose a 10-percent temporary tax on eyepieces equipped with diopter adjustments, as well as a 3-percent tax on sheeter knife units for papercutters, both of which are lower than the rates enjoyed by most favored nations.