China Performing Well Under Trade War Conditions

China’s imports of automobiles surged in July after lower tariff rates went into effect, data showed.

In July, China imported 165,000 units of automobiles and chassis, up 50 percent year on year, data from the General Administration of Customs showed.

In U.S. dollar terms, the value of imported vehicles jumped 72 percent in July to 7.38 billion dollars.

The surge could be attributed to pent-up demand as Chinese consumers delayed purchase of cars in expectation of lower auto prices starting from July, Changjiang Securities said in a research note.

China has been opening up its doors wider to the world, with a wide range of incentives aimed at expanding imports, including cutting tariffs on vehicles and auto parts.

Beginning July 1, the 20-to-25-percent tariffs for imported vehicles were cut to 15 percent, and duties on auto parts were lowered to 6 percent from the previous levels of 8 percent to 25 percent.

Many auto brands including Volvo, Audi, and Lexus previously announced plans to reduce prices of cars imported to China after the tariff cuts.

China’s imports of automobiles surged in July after lower tariff rates went into effect, data showed.

In July, China imported 165,000 units of automobiles and chassis, up 50 percent year on year, data from the General Administration of Customs showed.

In U.S. dollar terms, the value of imported vehicles jumped 72 percent in July to 7.38 billion dollars.

The surge could be attributed to pent-up demand as Chinese consumers delayed purchase of cars in expectation of lower auto prices starting from July, Changjiang Securities said in a research note.

China has been opening up its doors wider to the world, with a wide range of incentives aimed at expanding imports, including cutting tariffs on vehicles and auto parts.

Beginning July 1, the 20-to-25-percent tariffs for imported vehicles were cut to 15 percent, and duties on auto parts were lowered to 6 percent from the previous levels of 8 percent to 25 percent.

Many auto brands including Volvo, Audi, and Lexus previously announced plans to reduce prices of cars imported to China after the tariff cuts.

The world economic climate is to deteriorate further in the third quarter of the year, research institute ifo estimated on Thursday.

According to the report, the ifo index for the world economy would fall from 16.5 points in the second quarter to 2.9 points in the third quarter, returning to almost the same level as in the first quarter of 2017.

The economic climate deteriorated in nearly all regions, the report read, which was based on responses from 1,200 experts in 120 countries and regions.

Experts’ assessments of the current economic situation deteriorated significantly, but remain at a high level. However, their economic expectations scaled back considerably, falling to the lowest level since the end of 2011.

“The world economy has slowed to a crawl,” ifo president Clemens Fuest noted in the statement.

Ifo is one of Europe’s leading research institutes. Its business climate index is considered among the most important barometers for the German economy.