Slower growth and uncertainty ahead for China in 2017

As Beijing confirms that taxes on smaller vehicle segments will rise, the slowdown in growth becomes more apparent for China. By Xavier Boucherat

In December 2016, the Chinese government confirmed that the purchase tax on small cars would rise in January 2017 from 5% to 7.5%, and to the normal rate of 10% in 2018.

Since October 2015, vehicles with engines up to 1.6 litres in size have benefitted from tax breaks. These were introduced in response to

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