, Columnist
Taxes Won't Kill China's Car-Sale Boom
Interest costs have an outsized impact on people's willingness to buy automobiles.
This article is for subscribers only.
Don't blame taxes if China auto sales suffer next year.
Thursday's announcement that the levy on small-engine cars will be raised from the current 5 percent1481864665233 has been greeted with deep gloom in many quarters. Even analyst forecasts that sales growth will slow to 4 percent in 2017 from 13 percent this year "seem optimistic" given the rising charge, Matthew Stover, an analyst with Susquehanna Financial Group, told Bloomberg News.