CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. China To Drop Trade Barriers To Foreign Car Makers

China To Drop Trade Barriers To Foreign Car Makers

by Mary Swire, Tax-News.com, Hong Kong

10 November 2017


China is to lower trade duties on imported vehicles and will open up the domestic market to foreign-owned manufacturing firms.

State media said Vice Foreign Minister Zheng Zeguang had stated, following meetings between President Xi Jinping and US President Donald, that China would "gradually and properly" reduce tariffs on automobiles.

"On a trial basis, restrictions will be lifted on foreign ownership in utility vehicle and new energy vehicle (NEV) industries in pilot free trade zones by June 2018," he was reported as saying.

China's free trade zones have been used by the central Government to test new policies, including interest rate liberalization and fewer investment curbs, to better integrate the economy with international practices. Shanghai was China's first free trade zone, set up more than four years ago. Thereafter, in late 2014, Tianjin, Fujian, and Guangdong were allowed to set up the second group of free trade zones, and another seven were added nationwide in August 2016. These often provide preferential tax settings to encourage investment and innovation.

China levies taxes of about 25 percent on US-made cars and, since December 1, 2016, China has levied a 10 percent luxury car consumption tax on passenger cars and small and medium size commercial vehicles worth more than around USD188,000.

TAGS: environment | tax | investment | energy | tariffs | China | manufacturing | trade | free trade zone

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »