Car import tariff "changes face" into a foregone conclusion, Liu He and Davos said "orderly lower

At the recently held Davos Forum, Liu He, deputy director of the Central Financial and Economic Affairs Leading Group Office and deputy director of the National Development and Reform Commission of the People's Republic of China, cited China's economic policy and cited examples of import tariffs on automobiles. He said that China will orderly lower import tariffs on cars.

Liu He said that in terms of expanding imports, China had reduced the tariff rate on import tariffs on 187 products from 17.3% to 7.7% last year. In the future, we will also intensify efforts in this area, such as orderly reduction of automobile import tariffs.

In fact, China has already seen changes in import tariffs. Just last year when US President Trump visited China, some media reported that China’s commitment on automobile tariffs will be appropriately reduced, with an initial estimate of about 15%.

According to Chinese Vice Foreign Minister Zheng Zeguang, the media introduced that according to its own timetable and roadmap for opening wider to the outside world, China will greatly ease the market access of the financial industry, including the banking industry, the securities fund industry, and the insurance industry, and gradually reduce it. Car tariffs. Prior to June 2018, the pilot project of opening up the ratio of foreign-invested shares of special vehicles and new energy vehicles was implemented within the Pilot Free Trade Zone.

It can be said that after a lapse of three months, Liu He once again mentioned the import tariffs, indicating that the demonstration and preparation work of the relevant departments in China on the import tariff adjustment is progressing rapidly.

After China's accession to the WTO, the tariffs on imported cars are reduced year by year. The import tariff on cars is 25% plus 17% VAT. In addition, the car's displacement is added to the consumption tax. That is, an imported vehicle must pay three taxes: tariff, consumption tax, and value-added tax, of which the tariff rate is 25%. The consumption tax rate varies from 1% to 40% due to the difference in displacement, and the VAT rate is 17%.

An industry insider said to the headline app that "Trump expects China to reduce tariffs on imported cars. The main expectation is that American car companies can make profits." Foreign media also recently quoted a US senator as saying that China produced Automobiles sold to the United States will only face a 2.5% duty, while U.S.-produced cars will have to face a 25% tariff.

According to statistics compiled by the China Association of Automobile Manufacturers, the national customs auto import and export statistics show that in November last year, a total of 122,500 vehicles were imported, a year-on-year increase of 18.12%, a year-on-year increase of 13.98%; the amount of imports was US$5.013 billion, a year-on-year increase of 18.21%. Increased 15.04%.

According to another report, in 2017, China's imported automobile market showed a rapid rebound in imports, inventory continued to cover, terminal sales were recovering weakly; industry depth remained stable, and dealer inventory was at a reasonable level. The report predicts that the balance of supply and demand in China's imported auto market will be basically balanced in 2018, and the period of covering up the inventory will end. Customs imports and sales volume will both show a single-digit growth.

However, some analysts have pointed out that China's accession to the World Trade Organization (WTO) has fulfilled its duty to reduce taxes in 2010. In 2005, it has completely eliminated the quota management of auto imports. In 2006, the import vehicle tariff reached the final bound rate set by the WTO. "This is in line with WTO rules."

The adjustment of China’s import tariffs is not a “benefit” for U.S. companies but an active adjustment. "China's measures to reduce automobile tariffs are gradual and will not be accomplished overnight. Second, the rate of tax cuts is moderate, and we must combine the actual conditions of our own development."