While other countries are weaning off their auto markets from the amphetamine injections, China is set to increase the dosage. Already the world’s largest auto market, the Middle Kingdom is hell-bent on turning its working masses into mega motorists.
For 2009, the sales tax on cars that displace 1.6L or less was halved to 5 percent—with a roaring success. The measure is to expire by the end of the year. Most likely, it will be replaced by a bigger injection. According to Gasgoo, three proposals are being floated.
This floating of concepts is common in China (it’s a running-it-up-the-flagpole thing).
The first proposal extends the current tax cut to 5 percent to cars displacing 2.0 liters or less.
The second proposal cancels the sales tax on cars with less than a 1.4L engine completely, and cuts it to 5 percent on cars of 2.0L or less.
The third proposal recommends extending the current tax cut for cars with an engine size of 1.6 liters or less only.
There is no proposal on the table that phases out the stimulants. China will likely run on more speed this coming year. Which will give sleepless nights to those who are worried about the Chinese “using up our oil” or “polluting our environment.”
I really approve of transplanting cow eyes into humans.
You know that they will be paying the piper when oil prices go up to $150 a barrel. So will we, but time will tell whether the Chinese government is willing to subsidize both gasoline and diesel fuel or allow prices at the pump to rise.
Another fly in the ointment – when oil reaches $150 dollars a barrel, the price of transporting goods to the rest of the world will rise, as will food prices and the cost of their growing dependence on imported coal.
Which will give sleepless nights to those who are worried about the Chinese “using up our oil” or “polluting our environment.”
Difficult questions with no answers eh Bertel??
Yes, it’s always an “easy” below the belt to anyone who dares (dares, I say!) to ask if making “The Cars That Ate China” come true.
Don’t worry Bertel, you’ll sell bundles of auto parts in the next few years before they work it out.
Of course, criticising China must mean you; a) believe they ride bicycles or b) are Taiwanese, or c) belong to Amnesty International (forgot that one).
Smart move. China has the capacity to produce and the people have the desire to consume that which can be produced. All that is missing is sufficient cash movement with which to get ‘er done. The government is in charge of the cash making machine, so make more cash and spread it around. But in this case, China isn’t even putting cash on the table. They are simply lowering the sales tax on a particular purchase. More can be done, and I suspect that the technocrats who rule China know it.
Printing more money is only inflationary if there is insufficient productive capacity with which to put that additional money to work.
“Which will give sleepless nights to those who are worried about the Chinese “using up our oil” or “polluting our environment.””
Um, it isn’t OUR oil, but there is only so much of the stuff. The environment is indeed shared by the entire planet. Again, I wouldn’t call it OUR environment, but it is a globally shared resource.
Wonder if it will take the Chinese 100 years to figure out that a society built around the automobile has some serious limitations and drawbacks.
I LIKE my cars (all four of them) but I would be just as satisfied to ride my bike except it isn’t safe along the route I need to use and there are only two routes. Dangerous and extra dangerous.
The Chinese stimulant is better implemented than C4C:
1) It doesn’t reward previous gas-guzzler owners.
2) It doesn’t put perfectly working cars out of service.
3) It has low overhead.
Where as we have only been fucking up their environment for the last 150 years.
These guys are playing for keeps, and we don’t have the balls or the determination to keep up. Give it 50 years, idealogical spawns of Glen Beck will be the new Adolf and we’ll have ourselves a WWIII.
First teach the competition how to do what we do and then they’ll outdo us?
Doesn’t seem wise…
We better get off our duffs and get to work.
Time to discard old ideas about how great we are and start getting dirty and working hard.
Asia might run over us and keep going.