This Day, That Year

Item from March 31, 1996, in China Daily: While most foreign automakers are anticipating increased exports to China as new tariffs — 10 to 30 percentage points lower than former levels — come into effect, executives are more preoccupied with how to invigorate the currently slack market . ...

New tariff rates on cars become effective on April 1.

Owning an imported car is no longer a dream for Chinese customers, with the country’s tariff on imported vehicles cut sharply from up to 220 percent in 1986 to 25 percent.

After China’s entry to the World Trade Organization in 2001, car imports into China surged from 72,047 units in 2001 to more than 1 million last year.

The auto industry went into full gear in the last 16 years and since 2009, China has been the world’s largest auto market.

As an increasing number of foreign automakers are eyeing the Chinese market for growth, homegrown auto companies have decided to go global.

China’s 15 major automakers, including Lifan Motors and Great Wall Motors Group, have established 61 overseas plants and produced more than 270,000 vehicles in different regional markets in 2015, according to the Ministry of Commerce.

Last week, Chinese automaker Geely invested 300 million pounds ($374 million) in a new British factory to build electric versions of the iconic black London taxi cabs.

The total volume of the country’s exported vehicles could reach 750,000 units this year, according to the China Association of Automobile Manufacturers.