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China to alter auto parts import rules

(chinadaily.com.cn)
Updated: 2009-08-28 16:55

China will cancel tariffs on imports of auto parts that constitute 60 percent or more of a completely built vehicle, marking a policy shift after China lost an appeal against a WTO ruling last year, the Xinhuanet reported today.

China used to consider auto parts as a complete vehicle if they accounted for 60 percent or more of the value of a complete vehicle, and charged a higher tariff on them.

The WTO ruling stated such policies violated international trade rules and returned China's appeal in December 2008.