China is preparing a major policy shift aimed at reinforcing its textile and leather manufacturing base. From January one 2026, the government will introduce reduced provisional tariffs on 935 imported products, including cotton, wool, and selected hides used in footwear and leather goods. Approved by the Customs Tariff Commission of the State Council, the move is designed to ease raw material sourcing and stabilize input costs for domestic manufacturers. By lowering duties on essential Fibers and skins, China signals its intent to protect industrial momentum amid global supply uncertainty.

The most significant relief comes for cotton and wool, which form the backbone of spinning and weaving activity. Import tariffs on uncarded and combed cotton will fall from six percent to one percent, while in quota cotton and wool will also see similar reductions. Processed wool products will benefit from moderate cuts, supporting higher value yarn production. In the leather segment, tariffs on wet blue bovine hides and sheep and goat skins will be reduced, directly supporting footwear and leather goods manufacturing. Key highlights include

• Cotton and wool tariffs lowered to improve Fiber availability

• Reduced costs for spinning and fabric production

• Cheaper raw hides for footwear and leather units

Trade Agreements and Global Impact

These tariff cuts will work alongside existing free trade agreements such as the Regional Comprehensive Economic Partnership and several bilateral deals. Preferential rates will continue for imports from partner nations, further enhancing supply competitiveness. Strategically, the initiative strengthens China role as a global processing hub for textiles and leather by improving cost efficiency across the value chain. While this may increase competitive pressure on other producing regions, it also creates opportunities for closer supply chain integration with Chinese manufacturers.

By making critical industrial inputs more affordable, the policy supports capacity utilization in spinning, weaving, and tanning. It reflects a broader effort to align trade policy with industrial resilience, ensuring that China textile and leather sectors remain globally competitive through the next phase of market adjustment.