Skip to main content

China to slash Car import taxes by 50%


According to sources that have spoken to Bloomberg China is considering a move to reduce car purchase tax form 10 per cent to as little as 5 per cent, a 50 per cent drop.

The move is in response to China's ailing automotive market which is heading for its first decline in car sales in almost two decades, which some are saying is a direct result of the US trade war.

China has seen outstanding growth in the automotive market thanks to the increasing income of the Chinese middle classes.


The proposal has been good news for carmakers across the globe with Volkswagen AG seeing their share price increase by a staggering 6.9 per cent, the biggest intraday move since July 2016. Ford Motor Co. and General Motors Co. rallied in U.S. trading, while BMW AG and Daimler AG gained in Germany.

This is helping to steady the world’s largest automotive market, which is facing its first decline in more than two decades as a trade war with the U.S. hits at consumer spending power.

The trade war between the US and China has seen the Chinese economy and its stock market take the biggest hit.

The tax cut will only apply to cars with engines of 1.6 litres or smaller, said the people, declining to be named because the information isn’t public. China’s National Development and Reform Commission, also the top regulator, has submitted a plan but no decision has been, they said.

“This is definitely good news and a message the market has been waiting for,” said Juergen Pieper, a Frankfurt-based analyst with Bankhaus Metzler.
Ford rose as much as 6.3 per cent on Monday, GM rallied as much 5.1 per cent.

Cars of that engine size accounted for some 70 per cent of the total number of passenger vehicles sold last year, according to the China Association of Automobile Manufacturers.

China increased the levy on vehicles imported from America to 40 per cent. 
www.ecocropsinternational.com
Labels:

Comments

Post a Comment

Popular posts from this blog

Secure your online wallets & be careful with online services

You should be wary of any service designed to store your money online. Many exchanges and online wallets suffered from security breaches in the past and such services generally still do not provide enough insurance and security to be used to store money like a bank. Accordingly, you might want to use other types of Cyber currency wallets.  Otherwise, you should choose such services very carefully. Additionally, using two-factor authentication is recommended. Small amounts for everyday uses A Bitcoin wallet is like a wallet with cash. If you wouldn't keep a thousand dollars in your pocket, you might want to have the same consideration for your Bitcoin wallet. In general, it is a good practice to keep only small amounts of bitcoins on your computer, mobile, or server for everyday uses and to keep the remaining part of your funds in a safer environment. Backup your wallet Stored in a safe place, a backup of your wallet can protect you against computer failures and ma...
2 comments
Read more

Industrial wood pellets are trading at an all-time high.

EcoCrops International reports that Industrial wood pellets, as opposed to domestic wood pellets, are currently trading at an all-time high.  With the Argus 90 day Industrial wood pellet index trading at US$210 per tonne, up strongly from July 2018 where they were trading at US$175. The steep increase in prices is primarily driven by higher demand from European Power Stations.  Such as new power station coming online in the Netherland, Belgium, and Italy.  And existing Power stations such as the huge UK Drax power station burning more wood pellets and burning less coal. This trend is set to increase due to a number of factors: The EU climate change targets for reducing its greenhouse emissions, transforming the EU carbon-based fuel (coal) police towards a low carbon economy by 2050.  With targets for the reductions of greenhouse emissions is set for 2020 and 2030. Germany’s plant to phase out all coal power stations by 2038.  And the increased effici...
1 comment
Read more

China preparing solar farms in Space

Ecocrops internationa l reports that the Stations would orbit 22,000 miles from Earth and would weigh over 1,000 tons, that is 600 tons more than the International Space Station.  They plan to deploy small and medium stations between 2021 and 2025 and a megawatt level satellite in 2030. Space-based solar power has two major advantages over Earth-based solar power:  due to the orbit they can collect energy 24 hours a day, and they collect more energy as the sunlight is not filtered by the Earth’s atmosphere. Under the plans, huge satellites would be put into orbit to collect the sunlight with huge solar rays.  Once the energy is collected it would be sent back to receiving stations on earth as microwaves.  On Earth, these microwaves would be converted to electricity and fed into the grid. Due to the huge size of the satellites, the Chinese are proposing to fabricate with 3D printer technology and then assemble in the Earth orbit with robots. Pang Zhihao, a re...
1 comment
Read more