8.28China cuts auto-parts tariffs to meet WTO rules

China cuts auto-parts tariffs to meet WTO rules

 

http://autonews.gasgoo.com/auto-news/1011942/China-cuts-auto-parts-tariffs-t
o-meet-WTO-rules.html

 

Shanghai, August 28 (Gasgoo.com) China said today it has scaled down its
tariffs on imported auto parts after losing an appeal against a WTO ruling
that it was breaking international trade rules, the Associated Press
reported.

 

Starting September 1, all imported auto parts will be taxed at the same rate
regardless of the percentage of foreign-made parts used for making a vehicle
in China, according to a notice posted on the Web site of the National
Development and Reform Commission (NDRC), the nation's top economic planning
body.

 

The Chinese government was asked to amend its regulations after the World
Trade Organization (WTO) ruled against its policy of requiring foreign
automakers to buy more than 40% of the components used in any China-made
vehicle from local suppliers or pay more than double the usual tariff on
imported parts.

 

The WTO ruling last year that such policies violate international trade
rules was a rare coup for China's trading partners. Beijing lost an appeal
against the ruling in December, the AP said.

 

The higher tariffs were intended to prevent automakers from evading steep
auto import duties by importing large chunks of cars. The U.S., the EU and
Canada contended that the tariffs encouraged auto-parts companies to shift
production and jobs to China.

 

For more information please visit http://autonews.gasgoo.com/index.html