Why Luxury Car Becomes Luxury

Why “Luxury Cars” Become Luxury in China?

Jiayou Yan(Jessica)

2014/2/16

Catalogue

Why I choose this topic? Exclusive Summary China’s Auto Tariff Policy

1. 2. 3. 4. Component of imported auto taxes Example of markup on imported cars Economic effect of tariff Factors that affect the current situation of high price

Effect of WTO membership to automobile industry in China Forecasted Future Policy Trend

I. Why I Choose This Topic

In recent years, auto market of China is becoming more and more flourishing. Demand for cars increases year by year, especially for “luxury” cars. Many luxury brands unfamiliar to public before gradually get into our sight. However, the prices of those cars have huge differences in China and in America, making those “luxury” cars become really luxurious in Chinese market. Though tariff on cars has been declined after China joined World Trade Organization in 2001, imported auto prices are still much higher than many developed countries. The issue of imported car price has been increasingly concerned by Chinese people and media. Many people think the

exaggerated high price is unfair to Chinese consumers because they have to pay much more. While at the same time, the auto makers are enjoying the huge profit brought by Chinese market. Also, government also plays an important role in this argument.

For me, I’m curious about this phenomenon and want to do some research to discover the reasons lead to the difference. Despite personal interest, this issue influences the trade relationship of China with other countries. For examples, trade conflictions have happened many times between China and United States in the past years because of the high tariff Chinese government imposed on cars cut down importation of American cars. So I choose this topic to learn more about the how tariff affects importation and the tendency of the policy.

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II. Exclusive Summary

The report will provide analysis of China’s automobile tariff...