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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: BubbaFred who wrote (6635)	5/18/2004 4:06:34 PM
From: RealMuLan	Respond to of 116555

Definitely true, they are at much higher price. 10 years back, could be 6-7 times higher for a Benz-Mercede. Reason #1, high import tax, although under WTO, China will have to phase out the tax by next or next couple of years? from 2002 news "China's WTO commitment requires it to drastically lower car import tariffs over the next five years. On January 1 this year, the tariff for cars below 3L was lowered from 70 percent to 43.8 percent and for cars above 3L from 80 percent to 50.7 percent. " Reaspm #2, high profit for parent car company. And keep in mind, Japanese companies like Toyota mostly sells out date model to China at new model price. Wonder why Chinese do not particularly like Japanese<g> =============== "after China's WTO entry. Through till 2006, the 80 to 100 percent tariff on imported cars will be reduced to 25 percent, and that on the import of spare parts will decrease to 10 percent. " china.org.cn Actually, in big cities like Shanghai, buying a car is possible for plenty of people there, but gaining a license plate will cost an additional of 300,000+ Yuan. Although I quite agree with the measure in order to control the number of cars on the road and air pollution. I think Beijing car registration fee is too low, need to be raised<g>