Research Body Recommends China Increase Tariffs on Large Cars to 25%

A leading research body advocates for China to raise tariffs on large cars to 25%, potentially impacting the automotive industry and economy.

BRUSSELS, (Reuters) – According to Liu Bin, a government-affiliated expert from the China Automotive Technology & Research Center (CATARC) and Deputy Director of China Automotive Strategy and Policy Research Center, China ought to increase its import tariffs on large gasoline-powered cars to 25%. 

He stated that this tariff level complies with WTO regulations, noting the necessity amid rising U.S. auto import duties and potential additional tariffs for EU entry.

China's current import tariff for cars stands at 15%. However, Liu Bin of the government-affiliated China Automotive Technology & Research Center (CATARC) suggests raising tariffs for imported gasoline sedans and SUVs with engines larger than 2.5 liters to 25%. 

He argues that this adjustment aligns with WTO rules and promotes equilibrium between domestic and international markets, further supporting green and low-carbon development initiatives. 

This proposal would particularly impact German car manufacturers exporting large-engine vehicles to China. Additionally, Liu criticizes certain countries for imposing restrictions on the new-energy vehicle sector, contrasting these actions with the principles of green development and market economy upheld by the WTO. 

In light of the U.S.'s imposition of new tariffs on Chinese imports, including electric vehicles, and the European Commission's investigation into China-made EVs, which may result in additional duties, Liu emphasizes that the recommended tariff increase aims to expedite the transition to environmentally friendly transportation and differs fundamentally from protectionist measures observed elsewhere.

Source: worldautoforum‍