China Car Sales Looking Flat

Auto tariffs are a sticking point in trade talks

Financial news in China is occupied by talk of the Sino-US trade negotiations. Chinese officials said today saying they hope to find a mutually beneficial solution. Auto tariffs are a sticking point in tariff talks though with most US manufacturers selling more domestically produced cars in China than imported this may not matter significantly. As seen in the figure below, car sales are down since late 2017 and continue to flatten or decline. Auto sales in China are a sticking point for the Trump administration, but we shall see if auto tariffs are tackled in this round of trade talks.

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