A few days ago, we told you that the Chinese government will enact “nine measures” to prop up the ailing auto export sector. In the meantime we got our hands on the nine measures. Turns out (some may say, in typical Chinese fashion) that it’s only eight. 8 is a lucky number in China. Some of the measures are fluff, such as government support for car and parts shows, help for ailing shipping companies, advertising support (oddly, targeted at “Russia, Ukraine, South Africa, Vietnam, and Iran,”) and a ban on exporting used Chinese cars. Here are the biggies:
Chinese exporters will get their sales tax back on exports. Before, only seven percent of the 17 previously paid were refunded. Instant price reduction of 10 percent on wholesale. Government money and other support is coming for “testing, certification, inspection” (a.k.a. fatal crash test avoidance). Chinese car companies can invest abroad to obtain foreign R&D without the help of pesky joint venture partners (i.e. same as above). And the Big Kahuna: harmonize certification requirements between the ECE countries and CCC China, via “mutual recognition” of certification results in order to “save certification cost.” Didn’t we tell you there’s a deal in the works? Notably absent: the U.S. of A. But with global automakers seeking to reduce costs and build world cars, it’s only a matter of time before the Americans join the fray. And then another ten years before the deal goes down.