China could be about to introduce generous cuts to import duties on passenger cars, sources told Bloomberg, potentially marking the next step in the country’s auto industry liberalisation.
China’s State Council is looking at the possibility of halving the existing 25% tariff to between 10 and 15%, the sources said.
President Xi Jinping has previously said opening the industry was a key policy, and changes should be enacted as soon as possible. Earlier this month Beijing announced it was relaxing rules on foreign ownership of car manufacturing in China.
Such a move could give a huge boost to European and US carmakers, who have been desperate for greater access to China’s enormous domestic car market. Last year China imported 1.22 million vehicles, only around 4% of total sales with the country.