{"id":139194,"date":"2019-08-27T14:51:36","date_gmt":"2019-08-27T18:51:36","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=139194"},"modified":"2019-08-27T14:55:34","modified_gmt":"2019-08-27T18:55:34","slug":"china-moving-to-offset-impact-of-trump-tariffs-and-jump-start-auto-sales","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2019\/08\/china-moving-to-offset-impact-of-trump-tariffs-and-jump-start-auto-sales\/","title":{"rendered":"China Moving to Offset Impact of Trump Tariffs and Jump Start Auto Sales"},"content":{"rendered":"
\"\"<\/a>
Despite a slowdown in auto sales overall, NEV sales are doing well this year.<\/figcaption><\/figure>\n

The leaders of the world\u2019s largest automotive introduced measures to turn around last year\u2019s slide and perk up sales in China. The moves come as China is in the midst of a trade standoff with the U.S.<\/p>\n

The moves come as the Chinese government struggles with 13 straight months of automotive sales declines, as well as an overall stagnation of the country\u2019s economy. Once a fireball of economic activity, China\u2019s economy has cooled significantly in the last two years.<\/p>\n

However, the ongoing stalemate with the Trump administration has hampered recent efforts by the State Council to jump start the economy. The new measures are designed to overcome the impact the tariffs are having.<\/p>\n

<\/p>\n

(Trump Says No Tariffs on Japanese Autos \u2014 For Now)<\/strong><\/em><\/a><\/p>\n

The State Council is encouraging local governments to ease restrictions on auto sales or even remove the them altogether. It also wants incentives to encourage the purchase of new energy vehicles, such as battery electrics, hybrids and fuel cell-powered vehicles.<\/p>\n

\"\"<\/a>
Chinese President Xi Jinping is responding to the U.S. by raising tariffs on American-made goods.<\/figcaption><\/figure>\n

China\u2019s been encouraging the purchase of electric vehicles for some time now, making the country the largest market for the vehicles. However, after the latest round of government enticements ended, sales of the pricier NEVs began to slide. LMC Automotive last month estimated a decline of about 5%\u00a0for the full year.<\/p>\n

The rate of sales declines is slowing, according to the China Association of Automobile Manufacturers, or CAAM. In July, the rate continued to narrow on yearly basis with production and sales reaching 1,800,000 and 1,808,000 units respectively, down 5% and 12.1% than that of last month, and down 11.9% and 4.3% year on year. The year-on-year decrease rate shrank 5.4% and 5.3% than that of last June.<\/p>\n

For the first seven months, the production and sales of automobiles were 13,933,000 and 14,132,000 units respectively, down 13.5% and 11.4% year on year. The decrease rate narrowed 0.2 percentage points and 1 percentage point than that of the first six months, the group noted.<\/p>\n

(China Doesn’t Pull Punches, Implements $75B in Tariffs)<\/strong><\/em><\/a><\/p>\n

Even NEV sales were down on a monthly basis. In July, automakers sold 80,000 NEVs, which is off 4.7% from the year ago period. Of that, pure electrics accounted for 61,000 units, which is a 1.6% jump year-over year. Unfortunately, it\u2019s only bright spot. Companies sold 19,000 PHEVs, which is down 20.6% compared with the same period a year ago.<\/p>\n

\"\"<\/a>
President Donald Trump says he’s ready to dig in his heels about Chinese tariffs.<\/figcaption><\/figure>\n

Howver, through July, the sales of new energy vehicles were up significantly. They reached 699,000, increasing 40.9% year on year. To be specific, the sales of BEVs hit 551,000 units, a jump of 47.8% year on year; such figures for PHEVs were 146,000 units, representing an increase of 18.9% year on year.<\/p>\n

This happened while China\u2019s economy stumbled more sharply than expected at the start of the third quarter, as Beijing\u2019s trade dispute with the United States continues to take a heavy on businesses and consumers. Second-quarter economic growth slowed to a near 30-year low, Reuters reported.<\/p>\n

To keep the good times rolling on NEVs, Beijing will encourage credit support for purchases of new energy vehicles and smart home appliances.<\/p>\n

(U.S. Treasury Names China Currency Manipulator, Puts Trade Talks at Risk)<\/strong><\/em><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The leaders of the world\u2019s largest automotive introduced measures to turn around last year\u2019s slide and perk up sales in China. The moves come as China is in the midst of a trade standoff with the U.S. The moves come as the Chinese government struggles with 13 straight months of automotive sales declines. Get details at TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":130630,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5,9],"tags":[],"make":[],"post-state":[],"category_old":[118,150,151,123,287,155,158,154,163,132,125,297,139,172,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/139194"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=139194"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/139194\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/130630"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=139194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=139194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=139194"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=139194"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=139194"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=139194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}