CHINA will cut import tariffs on vehicles and auto parts starting July 1, the Ministry of Finance (MOF) announced yesterday.

For car imports, the 25-percent tariff levied on 135 items and the 20-percent duty on four items will both be slashed to 15 percent, down 40 percent and 25 percent, respectively.

Import tariffs for 79 items of auto parts will be reduced to 6 percent from the current levels of 8 percent, 10 percent, 15 percent, 20 percent, and 25 percent, down 46 percent on average.

“China safeguards a multilateral trade system. Lowering auto import tariffs is a major step to expand reform and opening up,” the MOF said.

After the move, the average tariff rate on vehicles will stand at 13.8 percent, while that on auto parts will be 6 percent. The adjusted rates will be “in line with the reality of the country’s auto industry,” the ministry said.

Cutting auto import tariffs to a significant degree will help the advance of supply-side structural reform, benefit the structural adjustment, transformation, and upgrading of the auto industry, and guide the improvement of quality and efficiency in auto products, according to the ministry.

It will also enrich domestic market supply and meet the diverse needs of the people to provide more plentiful and affordable consumer experiences, the ministry said.

The move will be a major boost to overseas carmakers, especially helping premium brands such as Germany’s BMW, electric car maker Tesla Inc. and Daimler AG’s Mercedes-Benz close a price gap on local rivals.

BMW said it would look at its prices and said the move was a “strong signal that China will continue to open up,” while Audi said it welcomed the “further liberalization and opening” of the Chinese market.

China is the world’s biggest auto market by the number of vehicles sold. Purchases of SUVs, sedans and minivans totaled 24.7 million units in 2017, compared with 17.2 million for the United States, the No. 2 market.

China and the United States issued a joint statement Saturday on economic and trade consultations, vowing not to launch a trade war against each other.

The two sides agreed to take effective measures to substantially decrease the U.S. trade deficit in goods with China.

China promised to significantly increase its purchase of U.S. goods and services to meet the consumption needs of the Chinese people and propel the high-quality economic development of China, which also helps support the U.S. economic development and employment, according to the statement.

The two nations agreed to meaningfully increase the export of U.S. agricultural and energy products.(Xinhua)

(Xinhua)

(Xinhua)