(Yicai Global) April 25 -- China’s Ministry of Industry and Information Technology has been working with tax authorities to cut automobile import tariffs in a move that should appease United States President Donald Trump.
The new rates will be announced as soon as they are decided, state-backed news site The Paper cited ministry spokesperson Chen Yin as saying at a press briefing today. The door to an open China will not be closed and will only open wider, he added.
Trump commented on the discrepancy between Chinese and American auto import rates at a press briefing with Japanese Prime Minister Shinzo Abe on April 18. The US levies 2.5 percent on cars imported from China, whereas vehicles heading in the opposite direction are hit with a 25-percent duty. He had earlier slammed the variance as “STUPID TRADE” on Twitter.
Chinese President Xi Jinping announced on April 10 at the Boao Forum for Asia, which coincided with the 40th anniversary of China’s opening up, that the nation would significantly broaden market access, create a more attractive investment environment, enhance intellectual property protection and encourage imports. Chen today described the policies as symbolic of China’s determination to promote a new wave of reform.
The ministry will also open up its ship and aircraft industries and ease foreign equity restrictions in these sectors, according to a strategy laid out by China’s cabinet the State Council and the Central Committee of the Communist Party of China. The plans include abolishing equity restrictions on new-energy vehicles this year, commercial vehicles in 2020 and passenger vehicles in 2022. It will also revoke a limit which prevents foreign investors from setting up more than two joint ventures in the country.
Editor: James Boynton