Worried China Considers New Subsidies For Cars
When China’s CAAM announces December car sales this coming week, China will have eked out a single digit growth rate for the year. Some of the slowdown was intentional, the explosive growth of 2010 was considered harmful in many ways. Looking into 2012 however, Chinese business leaders und bureaucrats are getting worried. Out comes a measure that had worked so well in 2010: Subsidies.
“New measures are in the pipeline,” to boost consumption, Huang Hai, former assistant minister of commerce and member of the economic and trade policy consulting committee, told China Daily.
Ministry of Commerce spokesman Shen Danyang also confirmed that his ministry is putting the final touches on new programs, expected to be announced next week.
What is most likely coming are subsidies for cars and household appliances.
China’s exports have steadily fallen over the past few months. According to Reuters, Europe is China’s single largest export market, but export growth to the continent slowed to just 5 percent in November from a year ago. Exports in November expanded 13.8 percent from a year ago, the most sluggish rate in more than two years. China now aims to prop up domestic consumption.
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I didn't know that you could still buy a new Oldsmobile in China.
I think you're referring to the Soueast logo.
The Chinese consumer does not care about subsidies and incentives. Money is only a small factor now that people need to win a lottery to buy a car. High growth rates are things from the past, now the Chinese market will decrease.