China To Lower Auto Import Tariffs

SHANGHAI, Nov 28, 2002; Reuters reported that China will lower auto import tariffs by 5.6 percentage points next year and raise import quotas by 15 percent to $9.125 billion, in line with WTO commitments, the official Xinhua News Agency said on Thursday.

The report did not specify what type of cars the tariff cuts applied to or the new levels.

In 2002, China cut tariffs on automobiles with engines of three litres or less to 43.8 percent from 70 percent, and lowered tariffs on cars with engines larger than three litres to 50.7 percent from 80 percent.

China, which joined the World Trade Organisation last December, has promised to lower average import duties on cars to 25 percent by July 1, 2006 and abolish all limits on quotas by January 1, 2005.