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 t...