Research On Economic Effect Of Import Tariff Reduction Of China’s Auto Products

On July 1,2018,the import tariff rate of China’s complete vehicles was reduced to 15%,and the tax rate of auto parts was reduced to 6%,and in this round,the reduction of complete vehicles and parts ranges from 25% to 46%.Since the reform and opening-up,especially after China’s accession to the WTO,the import tariff of China’s automobile products has been reduced year by year,and the degree of opening to the outside world has been deepened.China’s automobile industry has not only achieved a leap forward development,but also obtained the first-mover advantage in the field of intelligent vehicles,and entered a new stage of upgrading from the most productive nation of automobiles to a automobile manufacturing powerhouse.2021 marks the 20 th anniversary of China’s accession to the WTO.Over the past 20 years,China’s automobile industry has made remarkable achievements,and is determined to further expand its opening to the outside world.On the occasion of the 20 th anniversary,it is of great significance to study the economic effect of China’s automobile import tariff reduction,and to provide reference suggestions on the direction of China’s automobile import tariff adjustment and how the auto industry should grasp the opportunity of opening up to the outside world and realize transformation and upgrading.Firstly,this paper sorts out the literature related to the topic,and summarizes the research ideas,methods and results used by domestic and foreign scholars in studying the economic effects of import tariff concession,especially the economic effects of import tariff concession on China’s automobile industry.Then,in the second chapter,the relevant concepts and theoretical basis of this paper are introduced,and important subject words are defined to clarify the focus of this paper and provide a theoretical basis for subsequent analysis.The third chapter is the status quo analysis,first of all,the process of China’s automobile import tariffs and industrial development status are sorted out and summarized,from the historical logic to grasp the growth of China’s automobile tariffs and industrial development.Then on this basis,the correlation analysis is made between the reduction of auto import tariff and the current situation of industrial development.The fourth chapter is theoretical analysis,which discusses the economic effect of China’s automobile import tariff concession from two aspects of static effect and dynamic effect,and puts forward the corresponding theoretical assumptions.In order to verify the correctness of the theoretical hypothesis,this paper uses Stata software to empirically test the hypothesis in two steps in chapter 5.Among them,the first step of empirical analysis selects the panel data of automobile industry from 1992 to 2020 as the sample to investigate the relationship between automobile import tariff concession and automobile import,and discusses the difference between import tariff concession on automobile whole vehicle import and automobile parts import through heterogeneity analysis.The second step of empirical analysis selects the panel data of automobile industry from 1992 to 2020 as the sample to investigate the relationship between automobile import tariff reduction and the competitiveness of automobile industry.The empirical results shows that the import tariff reduction has a significant positive effect on China’s automobile import and industrial competitiveness,which indicates that China’s automobile import tariff reduction has indeed achieved the desired effect.The impact of import tariff reduction on automobile import is more obvious than that on industrial competitiveness,while R&D investment has the greatest impact on industrial competitiveness.In addition,through the heterogeneity analysis,it is found that the impact of the reduction of import tariff on the import of the whole vehicle industry and parts industry is different,and the reduction of import tariff has a greater impact on the import of auto parts industry.The results of qualitative analysis and quantitative analysis shows that China’s tariff reduction on automotive products has achieved a significant positive effect and there is still room for further reduction,and the economic effect of tariff reduction on the whole vehicle industry and parts industry is heterogeneous.Finally,according to the conclusions of the research,this paper puts forward the following suggestions: Firstly,we should further promote the import tariff reduction of automobile products in the future;Secondly,when formulating tariff reduction policies,we should pay attention to the industrial orientation of automobile import tariff reduction and implement accurate and effective tariff reduction;Then,the automobile industry should increase R&D investment and promote technological upgrading,so as to promote the better integration of China’s automobile import tariff reduction and the automobile industry revolution characterized by electrification,networking,intelligence and sharing.