ANNOUNCEMENT 21 Jul 2014

In July 2014, the government of China announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



ShanghaiDaily. (2014). Regional green car barriers to go. Available at http://www.shanghaidaily.com/business/auto/Regional-green-car-barriers-to-go/shdaily.shtml


Inception date: 21 Jul 2014 | Removal date: 19 Oct 2017
Still in force

Local sourcing

On 21 July 2014, the Chinese State Council issued a Directive which reduces regional protectionism regarding sales of domestically produced electric and hybrid cars. The regions are no longer allowed to impose special production requirements (e.g. locally produced electric motors or batteries) for such cars or their charging stations.
With this Directive, the Chinese government hopes to boost sales of electric and hybrid cars, thereby enabling manufacturers to profit from economies of scale and initiate mass production.
 
Furthermore, Chinese car buyers will profit from a reduced sales tax on eco-friendly cars from 1 September 2014 until 31 December 2017.

AFFECTED SECTORS