China slashes import tariffs on cars to increase international trade

The Ministry of Finance in China stated that it will decrease car import tariff rates by 10 percent on July 1, 2018. This will help make the world’s largest new car market more attractive to foreign carmakers.

The rate has dropped from 25 percent to 15 percent, and the aim is to boost investment in the Chinese automotive industry, which is currently being lauded for its development in EV car technology.

Even though it still makes cars more expensive than most other major markets, its scale alone has made lots of carmakers flock to its shores. Last year, 2,39,00,000 cars were sold in China alone, while a total of 1,56,30,000 were sold in the EU and European Free Trade Association countries during the same time.

Currently, non-Chinese companies can only build cars in the country via joint ventures, such as FAW-Volkswagen and Chery Jaguar Land Rover. Chinese President Xi Jinping stated that the country will remove the requirement for companies to collaborate with a Chinese firm, while owning no more than 50 percent of the joint venture.