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Chinese government to increase domestic auto makers subsidies

Publish Date 2014-11-25
According to "the Wall Street journal" reported that, Chinese is to the annual output value of more than local car makers $700000000 grant more subsidies. But Chinese automobile industry has been faced with a huge number of automobile factories, domestic producers as many as 170 problems.
The industry said that the Chinese government always hopes to build a domestic automobile industry exquisite technique, which can compete with Germany, the United States, and promoting local car manufacturer abroad. But take the subsidy may hinder China to realize the integration of domestic numerous small company goals and trade relations will become so complex.
The United States said on Friday that the World Trade Organization (WTO) ruling, China to the annual output value of about $5000000000 in the United States produces luxury cars and sport utility vehicle (SUV) inappropriate tariffs. WTO recommends that China revised anti-dumping regulations.
Experts said that the Chinese government subsidies will delay the overcapacity situation, and prevent those likely to chase the deer in the global market leader in the development of local. Macquarie Securities (Macquarie Securities) analyst Janet Lewis (Janet Lewis) says, this is actually between local government and central government seesaw battle, the former to bring fame and high paying manufacturing jobs in the automotive industry, and the latter to the integration of the industry. American Enterprise Institute in Washington (American Enterprise Institute) researcher Derek Scissors China's subsidy program called "permanent relief".
- article source: CMJ China mechanical and metal






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