New Tariffs to Cost Foreign Automakers

By Clouse, Thomas | Global Finance, February 2012 | Go to article overview

New Tariffs to Cost Foreign Automakers


Clouse, Thomas, Global Finance


CHINA

Amid charges that US companies sold automotive parts at prices below production costs, the Chinese government has said it will impose tariffs on imported US-made products. Plus, it has removed the automotive industry from its list of strategic industries for foreign investment. The decision to remove the automotive industry from its list of favored industries could increase investment and taxation costs and slow approvals for foreign automakers. Growth in China's automotive market slowed drastically last year: Automotive sales increased by 37% in 2010, according to research firm JD Power, but were up only around 5% in 201 1 .

The State Grid Company of China announced on December 25, 2011, that it had opened the world's largest energy storage facility for wind and solar energy - partnering with electric automobile producer BYD to design and build the facility. China has invested heavily in alternative energy but faces challenges in storing that energy, owing to the sporadic nature of wind and solar energy generation.

The new storage facility is one of many steps taken by Chinese energy companies in recent weeks to meet the country's growing demand for power. …

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