World’s second-largest economy, China said it would cut the import duty on passenger cars to 15% from 25%, effective from July 1 just as Washington and Beijing neared a deal to save Chinese telecoms group ZTE from US sanctions.
The source’s information stated that China’s cabinet has decided to cut the levy without elaborating further and the duty is still high by international standards, however, the US negotiators had been seeking a reduction to the US level of 2.5 percent.
Frankfurt-based head of automobiles research at Bankhaus Metzler, Juergen Pieper said, “This is, without a doubt, positive news.” Further, Pieper added, “You can’t completely disregard the fact that there are certain imbalances in China’s favor. This could be a signal that if one side is making concessions, it could lead to the Americans easing some of their pressure as well.”
A reduction in the import duty takes after a détente between President Donald Trump’s organization and Chinese authorities as they try to defuse strains and deflect a full-scale exchange war. While the impose diminishment could be asserted in a few quarters as an admission to Trump.
China’s current taxes mirror its recorded status as a developing economy under WTO rules. In any case, critics say it has seen quick monetary development, now has a tremendous exchange that presently requests changes to its exchange terms with whatever remains of the world.