MNI POLICY: China To Boost Car Sales In Domestic Economy Push

     BEIJING (MNI) - As the trade spat with the U.S drags on, impacting offshore

demand for Chia's exporters, Beijing  vowed Tuesday to further stimulate a

domestic economy that continues to face its own headwinds.

     The officials, from three of the ten government departments co-issuing a

policy document, stressed the government will help boost car sales as a main

push to supporting consumption and overall growth. Subsidies will be provided in

certain categories such as car sales and home appliances.

     Here are the important highlights from the press briefing:

     -As China's economy faces slowdown pressure, with the external environment

"complicated and severe," China needs to put greater value on consumption for

economic growth, helping stabilise demand said Liu Yunan, inspector at the

comprehensive affairs department of the National Development and Reform

Commission.

     -Slowing car sales is one of the main drags on retail sales growth. China

"will stabilize car consumption to support the major part of goods consumption,"

Liu said. He cited official data showing retail sales in 2018 would performed

better if it hadn't been for falling car sales.

     -China's auto market still has room to grow, as car sales were affected by

new conditions of the macroeconomy and fading effect of China's previous

preferential tax policies for car purchases, said Dong Dajian, an official from

the Ministry of Industry and Information Technology. He foresaw 1.5 million of

new energy car sales this year.

     - According to the agencies, specific measures to increase car consumption

include optimizing the subsidy structure of new energy vehicles, encouraging the

replacement of old and high-pollution cars with new and new energy vehicles,

promoting consumption of internet-connected vehicles, encouraging rural citizens

to upgrade autos, and ease restrictions on used car sales.

     -China will boost consumption of home appliances. The officials stressed

the government will offer subsidies to individuals and old neighborhoods which

renovate houses and replace elevators. Alongside that, rental housing and

nursing institutions for the elderly will be further developed.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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