China mulls 25% tariffs on large gas cars – expert

Chinese government-affiliated auto research body has proposed raising import tariffs on large gasoline-powered cars to 25 per cent, citing unfair trade practices and the need to promote green development, Reuters reported on Wednesday.

Liu Bin, a prominent expert at the state-affiliated China Automotive Technology & Research Centre (CATARC), argues that the tariff aligns with World Trade Organisation (WTO) regulations.

He believes it would help balance domestic and international markets and support China’s policy push for environmentally friendly, low-carbon development.

This potential tariff hike would likely affect German car manufacturers most significantly, as they export a substantial number of SUVs and large sedans to China, as per the statement.

Liu maintains that the proposed tariff increase aims to accelerate China’s transition towards a greener transportation sector. He emphasises that this initiative is fundamentally different from protectionist measures employed by other countries.