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"Cutting tariffs on luxury goods will only benefit wealthy people, which is unfair to the poor and will deepen social inequality," Liu said.

Liu added that Chinese people that are only moderately wealthy are continuing to go out of their way to purchase luxury items in order to improve their social standing. By cutting tariffs on luxury goods, the government will help foster an unhealthy consumer culture, Liu said.

However, Tong Minqiang, general manager of the Hangzhou Mansion, a high-end shopping center in east China's Zhejiang Province, said that a love of luxury can actually be a positive force for social development.

"Luxury goods are characterized by high quality and rich branding. The love for luxury goods represents the pursuit of excellence, which will stimulate creativity and encourage people to produce more wealth. Increased social affluence ultimately benefits both the rich and the poor," Tong said.

Tax troubles

Opponents of the tariff reductions worry that decreasing the tariffs will create a loss in the government's tax revenue and endanger the livelihoods of local businesses.

However, proponents of the reductions believe that they will simply create more demand, which will lead to more imports and ultimately more tax revenue.

"There will be a growing demand for luxury goods if prices are lowered, which will accordingly increase import volumes for the luxury goods. The government's total tax revenue will not necessarily be reduced," Tong said.

Although the expansion of foreign brands in China will inevitably bring some losses for local enterprises, it will also push local companies to move up the economic ladder and sharpen their competitive edge, Tong added.

Ouyang believes the government should categorize luxury goods before introducing any tariff reductions.

"The government should cut import duties on comparatively cheaper luxury items such as cosmetics, as these items are more likely to be purchased by ordinary people," he said.

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