The on-going trade spat over auto parts (see here) has helped push China to cut import duties on some auto parts. The People’s Daily reports:
- “With the approval of the Chinese government, the Customs Tariff Commission of the State Council, has decided to lower the tariffs on cars, SUVs (sports utility vehicles or cross-country vehicles), and mini-buses from 28 percent to 25 percent, said the ministry.
Meanwhile, the import taxes on auto parts, such as auto bodies, underpans, medium and low emission gasoline engines, will be reduced to 10 percent from a range between 13.8 percent and 16.4 percent.”
It looks like China was playing for time with a weak hand on this one and, as noted in my earlier post (“Trade Spats Update: Shoes (Fighting); Autos (Negotiating); TVs (Watching)“), has opted to negotiate a settlement. The shoes are unlikely to go the same way.
See news source:
China to cut tariff on cars, auto parts from July 1
People’s Daily Online – Beijing,China
China will further cut import taxes on some cars and auto parts as of July 1, the Ministry of Finance announced Thursday. With the …