Business / Policy Watch

China scraps tariffs on oil exploration facilities

(Xinhua) Updated: 2014-03-01 11:01

BEIJING - The Chinese government announced on Friday to include a range of oil and gas exploitation equipment to the duty-free list, to improve the country's competitiveness in the emerging sector.

China scraps tariffs on oil exploration facilities

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China scraps tariffs on oil exploration facilities

The newly-added items that are exempted from tariffs and import value-added tax included drilling equipment, semi-submersible drilling rigs, liquefied natural gas carriers and several other facilities that are used in exploration and high-end manufacturing.

The measure takes effect on March 1.

China expects the items to help in resource exploration, air pollution control, new energy development and railway safety.

"The adjustment shows China is accelerating the advance of emerging industries like equipment manufacturing amid the latest global wave of industrial transformation and upgrading," said Wang Zhonghong, researcher under the Development Research Center of the State Council.

Wang suggests the government stimulate domestic enterprises' technological innovation via financial aid and overseas cooperation to enhance core competence, apart from imports.

The list, compiled in 2009 and having been through several adjustments, contains products needed but unable to be manufactured in China.

Meanwhile, some parts used in engineering machinery, urban railway transit facilities and nuclear electricity equipment were removed from the list.

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