Chinese authorities have announced measures aimed at boosting sales of automobiles and electronics in order to support the country’s sluggish economy. However, these steps have failed to impress investors who were expecting stronger stimulus.
A statement from 13 government agencies, including the National Development and Reform Commission, stated that regions will be encouraged to increase annual car purchase quotas and support the sales of second-hand vehicles. The government views the automobile sector as a key lever for economic growth and extended a purchase tax break on new energy vehicles until 2027.
Despite these efforts, domestic consumer demand remains weak, and the Chinese auto market has been caught in a price war sparked by Tesla in January. More than 40 brands have since offered discounts on their vehicles.
This latest statement aims to encourage automobile consumption while discouraging protectionist policies and vicious competition among localities.
In addition, authorities have also released a separate statement to support sales of electronics products. They intend to promote the use of domestic artificial intelligence (AI) technology to enhance the intelligence levels of electronic products.
However, these measures have not been successful in boosting the market, as shares in China’s automobiles index have fallen by 0.3 percent and the electronics index by 0.6 percent.
Investors have expressed disappointment in China’s weak second-quarter growth and are hoping for stronger stimulus. They are looking forward to the Politburo meeting later this month.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.