Chinese auto import duties will be reduced
In a speech delivered at the davos forum, members of the central political bureau of the communist party, the director of the central financial and economic leadership group and the deputy director of the national development and reform commission, liu xue, said that china had reduced the tariff rate on imports of 187 products from 17. 3 per cent to 7. 7 per cent in the past year, and that china would intensify its efforts in that regard. He also cited, for example, the orderly reduction of tariffs on automobile imports。
In fact, our country has experienced an adjustment in import tariffs. Just last year, during the united states president's trip to china, media reports indicated that china's commitment to automobile tariffs would be reduced appropriately, with an initial estimate of around 15 per cent。
Secretary-general choi dong-soo of the national motor market information council said that if tariffs on imported vehicles were lowered, the advantage of importing new energy vehicles would be relatively greater, especially for enterprises that build plants in tax havens, and that domestic raw materials such as batteries should be exported in a refunded manner, with minimal freight costs, so that import duties on cars such as tesla would be lower. It is possible to reduce the combined tariffs from 45 per cent to less than 20 per cent, leading to significant cost improvements. Tesla's competitive position with domestic luxury cars in high-end cars will be favourable。
On the other hand, the high-end pattern of domestic vehicles is generally low, with more than $250,000 worth of guidance vehicles accounting for about 12 per cent of the market, which is largely the contribution of luxury cars. The high-end model of the jointly financed brand was only 5 per cent, with little impact. Autonomous brands have nothing to do with lower import tariffs。
According to choi dong-ho, in general, current tariffs are based on tariff levels in developing markets, and tariff adjustment pressures have increased as china's market for motor vehicles has risen in world size. Future adjustments to tariff levels of about 10 per cent similar to those in the eu are reasonable. A further reduction would pose a significant risk of stress. Currently, domestic vehicles are in the process of falling prices, and future tariff reductions will not have a significant short-term impact on domestic cars markets as long as they are not one-off。
