China's Lower Tariff Rates Fail To Boost Local Consumer Spending

China's decision to cut tariff rates is not likely to result in significantly lower prices for imported consumer goods, according to Reuters. Effective on June 1, 2015, the government's move aims to stimulate domestic consumption and boost economic growth. Accounting for more than half of China's GDP growth, private consumption in the country is a laggard compared with levels in other countries, such as the United States. Retail prices of imported goods in China are about 40 percent higher than those in other countries, prompting Chinese tourists to shop for such items when they travel abroad.