Numerous automakers have been reporting a global drop in sales due to poor performance in the world’s biggest automotive market, China. While the automotive production output soared in the country, foreign manufacturers sales suffered great loss.
The most recent development in light of the same was announced earlier this week as the government has decided to reduce intervention in its vast industrial sector, the Industry Minister said on Monday. Reports now suggest that Beijing seeks to ease concerns about its industrial policy, core to Washington’s complaints in the Sino-US trade war.
China's overall automotive production output has increased while other sales of foreign manufacturers have taken a hit.
“We will gradually reduce the government’s micro-management and direct intervention, in order to allow the market to effectively decide resource allocation and support the development of the manufacturing industry”, Miao Wei, minister of industry and informational technology, said at the China Development Forum.
This news comes a few days ahead of the latest round of high-level trade talks between China and the USA on Thursday. In light of the same, Washington has threatened further action if China does not change its practices on issues ranging from industrial subsidies to intellectual property rights.
Amid the trade war between the two countries, US President Donald Trump had announced that he wishes to bring manufacturing jobs back to the United States. Commenting on the same Miao suggested that such a decision is not in the hands of one person because an entire supply chain was involved.
“Every company will consider putting its supply chain in a country where costs are relatively lower, this the purpose of the law of economics,” he said.
“If, after comparisons are made, that the United States has lower costs and possess advantages versus other countries, I’m sure that a company…will bring its manufacturing back to the United States.”
China is planning to launch a highly-anticipated Nasdaq-style technology board – a move by Beijing to counter U.S. curbs on China’s technology advances. In the near future, China’s government also plans on implementing policies such as tax reductions and improve the protection of intellectual property rights, according to Miao, adding that the general manufacturing sector will be fully liberalized.