Research On The Impact Of Automobile Import Tariff Reduction On Automobile Imports

April 10,2018,President Xi Jinping announced in the opening ceremony of the 2018 annual meeting of the Boao Forum for Asia,this year,China significantly lower import tariffs on imported vehicles.Automobile tariff reduction brings great chnages for China's auto industry in 2018.Foreign smart vehicles,new energy vehicles and small brand cars will enter the Chinese market,and enrich the domestic car markert.Since most of China's car companies jointing ventures with foreign car giants,they get profits from joint ventures and develop their own brand business.The price of imported cars falls and imports increase,which will hit joint ventures and their own brands.On the other hand,cutting import duties on cars sold into China,consumers will benefit from the policy.Research at home and abroad and carding of correlative tarriffs theories lay the foundation of this study.This paper collates the historical evolution of China's automobile tariff system,makes a theoretical analysis of the effect of tariff reduction on China's automobile import,and analyzes the current situation of automobile import in China by using statistical data.By establishing the model and using the empirical analysis,the paper verify the impact of the reduction of Automobile import tariff on automobile import.On the basis of the model,it is assumed that the reduction of automobile import tariff has a significant positive effect on the import amount of automobile.By introducing real gross domestic product(GDP)and RMB effective exchange rate as control variables,this paper analyzes whether the change of automobile import volume is affected by tariff reduction.This paper selects the quarterly data of automobile import,real gross domestic product and RMB effective exchange rate from 2001 to the end of 2018(a total of 216 groups)to verify the hypothesis of this paper.The regression results show that(1)Car tarriffs reduction causes an increase in atuomobile imports(2)The increase of real GDP by 1%will contribute to an overall increase of 1.75%in automobile imports,so the impact of real GDP is in line with the direction of increase or decrease in automobile imports.(3)A 1%increase in the effective exchange rate of RMB will lead to an overall reduction of 4.35%in car imports.It can be seen that the influence direction of RMB effective exchange rate is the opposite of the increase and decrease of automobile imports.The innovation of this paper mainly lies in(1)The domestic research into the automobile imports are little widely available.Most of the research uses the qualitative analysis method to expound.Based on the previous research content,the paper further expands the impact of tarriffs on the automobile imports to carry on the appropriate supplement to the automobile import aspect.(2)Whether the decline of automobile tariff can bring about the increase of automobile import,most of the predecessors carried out effect analysis from a theoretical perspective.Given the decline in the appropriate range of tariffs,it will lead to a decline in domestic car prices.Research on the effectiveness of practical policies becomes certain practical significance.(3)This paper attempts to enrich the research of automobile industry by using a combination of qualitative and quantitative methods.This paper uses the relevant theories and policies of automobile tariffs for analysis.From the aspects of automobile tariff policy,economic effect of automobile tariff reduction and automobile import status,this paper uses empirical method to make a systematic study on the influence of automobile import tariff reduction on automobile imports.Through the empirical analysis,it is proved that the policy of lowering the import tariff of automobile has a positive effect on the automobile imports,that is,the reduction of the import tariff of automobile,which makes the market price of the imported automobile decrease;stimulates the domestic consumer's demand.The price effect and consumption effect brought by the decline of automobile tariff are also verified in this paper.Automobile tariff cuts will reduce the retail price of car imports,increase consumer demand for imported cars,and bring competitive pressure to domestic car manufacturers,especially those producing high-end models.In order to cope with fierce competition,domestic automobile manufacturers should make full use of domestic and foreign resources,optimize the allocation of resources,and drive the take-off of China's automobile industry.In order to deal with the opportunities and challenges brought by the reduction of automobile tariff to China's automobile industry,this paper finally suggests that domestic automobile enterprises should enhance themselves in the following aspects:(1)To improve the international competitiveness of automobile industry enterprises;(2)To enhance the technical capability of automobile industry enterprises;(3)To carry out the transnational operation of Enterprises;(4)To develop energy-saving and environment-friendly automobile industry Actively;(5)Domestic automobile production enterprises should adopt the way of price reduction,improve service level and establish brand image to respond positively.