China will lower tariffs on whisky imports to 5% from 10%, in a boost to Britain's whisky industry after the two countries' leaders met this week to repair fraught ties.
The lowering of tariff rate will take effect on February 2, according to a statement by China's State Council.
Prime minister Keir Starmer's office, which announced the deal on Thursday, said it would be worth £250 million to UK exporters over the next five years.
Scotch whisky tariffs were among the items discussed by Starmer and Chinese president Xi Jinping on Thursday in Beijing, where the two pledged greater cooperation in trade, investment and technology.
China imported $445.5 million (£324.21m) worth of whisky in 2025, of which 84% was from the UK, according to customs data and Reuters calculations.
Beijing had in 2017 set a 5% provisional tariff rate on whisky imports, but removed the provision for 2025, in effect hiking the rate to 10%.
Commenting on the development, Mark Kent, chief executive of the Scotch Whisky Association, said the proposed tariff reduction has the potential to re-energise exports of Scotch to China.
“China is a priority growth market for many Scotch Whisky producers, which in recent decades has developed into a knowledgeable and premium focused market with a strong appreciation of Scotch,” he said.
“We are very grateful to the prime minister and officials on both sides for this welcome development and look forward to working with the UK government on the rapid implementation of the tariff reduction, as part of wider work to improve competitiveness in all Scotch whisky’s global markets.”