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Carmakers Get Relief in Crosshairs of China-U.S. Trade Fight

  • President Xi Jinping vows to significantly cut auto import tax
  • China repeats plan to ease foreign ownership limit on car JVs
Bloomberg business news
Principal Global Investors CEO Jim McCaughan weighs in on Chinese President Xi Jinping’s speech at the Boao Forum.(Source: Bloomberg)
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Carmakers from BMW AG to Toyota Motor Corp. got some good news from China after President Xi Jinping reiterated a pledge to reduce import tariffs on vehicles this year, heeding decades-long pleas from companies seeking better access to the world’s biggest auto market.

China will “significantly lower car import tariffs” and “sincerely hopes to boost imports,” Xi said in a speech at the Boao Forum in Hainan Tuesday. Xi also reiterated plans to relax foreign ownership limits for car ventures and said the government will try to roll out the policies as early as possible. He didn’t offer details.