China to reduce tariffs on some vehicles and auto parts

Beijing. May 24. Silkroadnews - China’s Ministry of Finance said it will reduce import tariffs on some vehicles from 25% to 15%, CNBC reported. Tariffs on some auto parts are said to drop to 6%. The cuts are expected to become effective as of July 1.
The move is an attempt to open the world’s largest car market for international players. Discussion of a possible tariff cut in the sector was first announced in April and mentioned in the speech by Chinese President Xi Jinping that month.
According to the Ministry of Finance, the average tax on the vehicles under the tariff reduction will amount to 13.8%.
Toyota’s Lexus can benefit from this decision, given that currently it does not produce its cars in China and has not announced any plans to move the manufacturing to this country.
BMW could also gain from lowering tariffs. The previous analysis suggested that the German automaker would suffer from China’s implementation of import tariffs against the US, given that it produces a significant number of its cars in the US, and then delivers them to China.
Import of Chinese cars increased by 16.8% compared to the same period last year. About 1.21 million vehicles were imported to the country.