China's steps to boost sales of cars, electronics disappoints market

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China announces steps to boost sales of cars, electronics

Regions will be encouraged to increase annual car purchase quotas and efforts will be made to support sales of second-hand vehicles, said a statement on automobile consumption published by 13 government agencies including state planner National Development and Reform Commission.

As China's post-pandemic economic recovery slows, policymakers have identified the country's automobile sector as a key lever which they want to use to shore up growth.

The Friday statement aimed at encouraging automobile consumption echoed this. "Localities must not roll out protectionist policies and avoid vicious competition," it said. A separate statement on supporting sales of electronics products said authorities would encourage scientific research institutes and market entities to actively apply domestic artificial intelligence technology to improve intelligence levels of electronic products.

The measures echoed similar ones announced by authorities in recent months and failed to boost the market, with shares in China’s automobiles index

 

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