The taxation change is mainly aimed at encouraging car owners to consume less oil and at cushioning environmental pressures,

Generally speaking, China is losing its advantages in primary products whereas it has not occupied an advantageous position in products of higher levels, and this directly affects the nation’s overall international competitiveness.

China’s per capita GDP has topped 1,000 US dollars, which means a growing number of Chinese citizens will be able to afford private cars and the auto industry will outgrow the country’s GDP,