Trump wants to start a car war with China

Трамп хочет начать автомобильную войну с Китаем

USA dissatisfied with the collaboration in the automotive sector.

At the upcoming April meeting of the President of the United States of Donald trump and Chinese President XI Jinping will discuss the change of the format of doing business in the automotive industry of the two countries, according to Axios.

Now, if the American brand is going to produce cars in China, it is obliged to create a joint venture (JV) with a Chinese company and give her at least a 50% stake in the new venture. If any foreign company imports their cars for sale in the Chinese market, they are taxed at 25%. Under US law, established in the territory of the country the plant may be completely owned by a foreign company and imported into the country cars are taxed 2.5%.

The new US administration is unhappy with the rules that apply with 90-x years, and intends to require them to change. In China will be discussed three options: either the Chinese company to sell cars in the US and build factories to produce them, or allow American brands to own 100% of their production to China or all the profits of Chinese manufacturers in the American market remain in the United States.

According to experts, discussion of new rules for the auto trade can substantially exacerbate relations between the US and China.

Recall. earlier, Secretary of state USA Rex Tillerson and the Chairman of the PRC XI Jinping held talks in Beijing.

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