China’s Ministry of Finance has unveiled sharp reductions to tariffs on imported vehicles and automobile parts, in the immediate wake of the latest round of trade negotiations with Washington.
MOF’s official website said that the starting from 1 July import tariffs for most vehicles would be reduced to 15% from 25%, while tariffs for auto parts would be reduced to 6% from around 10%.
According to MOF the move is part of efforts to further open up the Chinese market, as well as expedite the development of the domestic vehicle industry.
MOF’s announcement comes in the immediate wake of Sino-US trade negotiations held in Washington DC from 17 to 18 May, which concluded with a joint declaration that both sides would seek to reduce the US trade deficit with China, while China will also greatly increase its purchases of US goods and services.
President Xi Jinping also announced in early April at the Bo’ao Forum for Asia that China would further expand the opening of China’s manufacturing sectors, and loosen restrictions on foreign investment in the automobile industry.