China's policy to unilaterally reduce the average tariff early this year will expand China's exports and push Chinese enterprises to meet the challenges earlier from China's impending entry into the World Trade Organization (WTO), according to a senior customs official.

Approved by the State Council, China reduced again the average tariff by 6.6 percent since January 1, involving 3,462 items.

Tariff reduction will allow more foreign goods into the domestic market at lower prices and pose pressure on Chinese enterprises. But it will also give the enterprises preparation time to handle the real shock when China is in the WTO, Lu Peijun, director of the Shanghai Customs Office, said.

The reduction has less impact on textile and information industries in Shanghai, China's commercial capital, according to Lu. But China's infant auto industry will be put under a lot of pressure, he added.

The textile industry, by tuning up its' structure, will benefit from the leading advanced technologies to develop new and high-tech products. But middle- and high-grade products, which are of a relatively low quality, will suffer, Lu noted.

China adopted lower tariffs on information and communications last year, and the tariff reduction will do little harm to the industries.

In a long run, the lowering of the tariff will exert a negative effect on Shanghai's auto industry and car parts in particular, Lu said.