China’s steps to boost sales of cars, electronics disappoint market

china’s-steps-to-boost-sales-of-cars,-electronics-disappoint-market
China’s steps to boost sales of cars, electronics disappoint market

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 have been calling for stronger stimulus.

According to a statement on automobile consumption published by 13 government agencies, regions will be encouraged to increase annual car purchase quotas and support sales of second-hand vehicles. Policymakers have identified the automobile sector as a key lever to shore up growth in China’s post-pandemic economic recovery. In June, they extended a purchase tax break on new energy vehicles (NEVs) until 2027.

Despite these efforts, domestic consumer demand remains weak in the world’s largest auto market. A price war triggered by Tesla in January has led to more than 40 brands offering discounts on their vehicles. In March, an industry association called for the auto industry and authorities to cool the “price-cut hype” for the healthy and stable development of the industry. The recent statement on encouraging automobile consumption echoed this sentiment, emphasizing the need to avoid protectionist policies and vicious competition.

In addition to measures for the automobile sector, authorities also announced support for sales of electronics products. They plan to encourage the application of domestic artificial intelligence (AI) technology to improve the intelligence levels of electronic products.

However, these measures have not had the desired impact on the market. Shares in China’s automobiles index were down 0.3% and the electronics index fell 0.6%, while the benchmark index rose 0.1%.

Investors have expressed disappointment with China’s weak second-quarter growth and are hoping for stronger stimulus. They are looking to the upcoming Politburo meeting later this month for potential measures.

In conclusion, Chinese authorities have introduced measures to boost sales of automobiles and electronics in order to support the economy. However, these steps have not impressed investors, who are calling for stronger stimulus.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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