China’s commerce ministry meets automakers to discuss tariff rate hikes on imported cars with large engines


The Ministry of Commerce Photo: VCG

The Ministry of Commerce Photo: VCG

China’s Ministry of Commerce (MOFCOM) held a meeting on Friday, listening to opinions and suggestions from industry personnel, experts and scholars on raising the tariff rate on imported cars with large-displacement engines. 

Representatives from relevant industry organizations, research institutions and automobile companies attended the meeting, according to a statement released on MOFCOM’s website on Friday.  

The meeting adds to a succession of events that clearly shows China is seriously studying calls of tariff rate hikes on imported large-engine cars, industry insiders said. 

On May 21, the Global Times exclusively reported an expert’s call for tariff rate hikes on imported cars with engines larger than 2.5 liters. 

China should consider raising the temporary tariff rate on imported cars with large-displacement engines, in order to reduce imports as part of the country’s broader efforts to cut emissions and promote the green development of the auto industry, Liu Bin, chief expert of China Automotive Technology & Research Center and deputy director of China Automotive Strategy and Policy Research Center, who has participated in drafting policies for China’s auto industry, told the Global Times in an interview in May.

On June 18, at a closed-door meeting between major Chinese and European carmakers and industry bodies, some representatives attending the meeting urged higher tariff rate on large-engine cars, the Global Times learned from a source who attended the meeting.

Friday’s statement showed the MOFCOM met with automakers and industry associations, and officials had listened to the opinions and suggestions of industry, experts and scholars on raising the import tariff rate on fuel-powered cars with large displacement engines. 

The latest development suggested that China is seriously studying the calls of tariff rate hikes on imported large-engine cars, experts said. 

In the previous report, Liu from China Automotive Technology & Research Center told the Global Times that according to WTO rules, China’s temporary tariff rate on imported vehicles could be raised to a maximum of 25 percent, and that such an adjustment is not only in line with WTO rules, but also in line with China’s broader efforts to promote the green transition in the auto industry and pursue the goal of reducing carbon emissions. 

“It is fundamentally different from protectionist measures taken by certain countries and regions,” the expert said. 

The suggested plan to raise the temporary tariff rate on large-engine vehicles could affect a major car import segment. According to official data, China imported 250,000 cars with engines larger than 2.5 liters in 2023, accounting for 32 percent of total imported cars. 

Imported vehicles with large engines also account for 80 percent of China’s consumption of vehicles with large-displacement engines. If the temporary tariff rate is increased, it will have a major impact on auto imports from the EU, while also affect those from the US. 

Global Times


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