In the conference room, when Zhao Guoyang and Hong Wenqing talked about some issues in the island government's import car tariff policy, Yao Gang from the Ministry of Foreign Trade next to him was a little confused.

"Guoyang, does the island government really implement a zero-tariff policy for imported cars from abroad? Then what about their domestic automobile companies, such as Honda, Toyota, and Nissan, have to bear a lot of pressure?"

"Although the level of the automobile industry in the island country is definitely much higher than that of ours, it may not be able to gain an absolute advantage compared with the European and American powers, right?"

After Yao Gang asked this, everyone in the conference room nodded in agreement.

Although Hong Wenqing knows a little about the island country's automobile tariffs, he doesn't know much.

After Minister Yao asked Zhao Guoyang for inquiries, he also shot his inquiring eyes at Zhao Guoyang.

When Zhao Guoyang noticed the eyes of several big shots, he began to explain slowly.

He raised his finger and said, "Dear leaders, although the island countries have implemented a zero-tariff policy for imported cars and seem to be very open and confident in the automobile market, its non-tariff barriers effectively block foreign cars from the island market."

"According to what I learned from a report from a well-known foreign economic newspaper in February this year, last year, that is, in 1991."

"Foreign brands including Renault, Peugeot Citroen and their South Korean rival Hyundai and Daewoo account for only about 4% of the total car sales."

"All other foreign brands add up to only about 1% of the total sales. At first glance, such a figure is completely incompatible with the open automobile tariff policies of island countries, but in fact, it is an inevitable result of the island countries' perfect non-tariff trade barriers..."

Listening to Zhao Guoyang's talk, Hong Wenqing was surprised.

He didn't expect that this young "Researcher Zhao" would have a deep understanding of foreign economic policies and is simply an all-round talent.

Zhao Guoyang had just closed his mouth, and Zhu Yiming, a senior official from Liaodong Province, couldn't help but ask: "Researcher Zhao, what exactly is the 'non-tariff trade barrier' you just mentioned? It sounds amazing!"

Zhao Guoyang smiled and explained: "Senior Zhu, the issue of 'non-tariff trade barrier' is very complicated and cannot be explained clearly in just a few words..."

"Simply put, trade barriers are the main means for countries to protect their own industries, including tariff barriers and non-tariff barriers."

"In comparison, non-tariff barriers are currently adopted by more countries due to their diverse forms, strong concealment and more discriminatory nature. Island countries have always been one of the most successful countries in the world to use trade barriers to protect their industries."

"Especially, the automobile trade barriers of island countries have played an important role in the rapid development of their automobile industry, and ultimately make island countries one of the world's automobile powers."

Speaking of this, Zhao Guoyang smiled and said, "It may be a bit boring to explain just like this. Let me give you an example based on the reports in this newspaper!"

Zhu Yiming naturally nodded repeatedly to express his agreement when he heard this, and the other bigwigs also nodded one after another, and he focused his attention and sounded.

Zhao Guoyang sorted out his thoughts and then pointed out: "According to the situation pointed out in the report I have seen, light vehicles with an exhaust volume of less than 660cc account for about 1/3 of the sales of island countries' cars, and these models, American and European car companies, are almost never produced."

When Zhao Guoyang spoke this, a burst of discussion sounded in the conference room.

Another big shot in Liaodong Province, Lu Xinmin, said in confusion: "Researcher Zhao, why do these automobile companies in the United States and Europe give up on these small-displacement light vehicles? Obviously, this type of car sells well in the island country and does not make money. Are they fools?"

This question from Lu Xinmin basically represents everyone's voice.

After he asked, the big guys nodded and agreed.

After everyone's discussion gradually faded, Zhao Guoyang explained slowly: "Before answering this question, I think everyone should first understand how the island country's automobile tariff barriers have developed."

Zhao Guoyang said with bright eyes: "Although the island country joined the General Agreement on Tariffs and Trade as early as 1955, the government's tariff protection for automobiles continued until 1978."

"Since the models produced by the Island Country Automobile Company are mainly small cars with small wheelbases, the Island Country imposes higher tariffs on imported small cars."

"Throughout the 1960s, the tariff rate for small cars with a wheelbase of 2700mm and below in island countries was 40%, while the tariff rate for cars with a wheelbase of 2700mm was 35%, the tariff rate for small cars with a wheelbase of 2540mm and below was 30%, and the tariff rate for trucks with a wheelbase of 2540mm and below was 27%.

"In addition, according to the provisions of the General Agreement on Tariffs and Trade, island countries have listed the automobile industry as a childish industry that needs protection after joining the GATC."

Hearing this, Gao Tongzhou was puzzled: "Crean industry? Is this name so strange?"

Zhao Guoyang glanced at Vice Mayor Gao and smiled indifferently: "Yes, this 'natural industry' is a concept diffracted in foreign trade in order to protect the country's basic industries."

"Generally speaking, if an industry lacks technical experience, has low productivity, and produces costs higher than international market prices, it cannot compete with foreign companies."

"Under the protection of a certain period of time, the industry can improve efficiency, exist under the conditions of free trade, and make profits, and the industry is an infancy industry."

After Zhao Guoyang's explanation, the big guys in the conference room finally understood the rough idea.

Zhao Guoyang paused for a moment and continued to speak: "After the island government listed the automobile industry as a childish industry that needs protection, the island automobile company has a rare respite."

"It was not until the island government's automobile companies grew and fully possessed the export capacity that the island government gradually liberated its domestic automobile market."

"In 70 years, the island country reduced the tariffs on small cars with a wheelbase of 2 700mm and below to 20%. Starting from 71, the tariffs on cars in island countries were reduced to 10%. In 72 years, the tariffs on cars were reduced to 8%.

"In 1978, the island countries completely abolished the car tariffs. As for the current situation, the car tariffs of the island countries are already zero."

When Zhao Guoyang said this, the big guys in the conference room suddenly realized it.

Yao Gang couldn't help but exclaimed: "It turns out that the island government had already begun to deploy the small-displacement car market decades ago. No wonder the American and European car companies gradually stopped involving this market..."

Zhao Guoyang said "hmm" and nodded, "In addition to making a fuss about car displacement, before the 1980s, island countries imposed item tax on cars, which was roughly equivalent to our domestic purchase tax."

"On small passenger cars, 15% are charged, 30% are charged for medium passenger cars, and 50% are taller..."

"At the beginning stage of car consumption in island countries, which mainly involves small passenger cars, this policy also played a great role in suppressing the sales of European and American cars."

Zhao Guoyang explained that Hong Wenqing, a senior official from the State Taxation Bureau, had already convinced him very much.

He never expected that he would be pulled over to participate in such an argumentative meeting in the automobile industry and would find such a talent.

No, talent alone is no longer described. This "Researcher Zhao" is simply a "knowledge of everything", which is amazing.

Zhao Guoyang didn't know what Hong Wenqing was thinking. He continued to speak: "In addition, although the island country now adopts a zero-tax policy for imported cars, it also has taxes in the maintenance and use process..."

"At present, the island countries are taxed on car taxes in the car ownership stage and passenger cars are taxed according to their displacement, and are divided into 10 ranges. The larger the displacement, the more tax it is, the more tax it is, and the annual tax amount can reach more than 100,000 yen."

"As for commercial vehicles, taxes are levied based on the maximum load capacity. The larger the load capacity, the more taxes are levied, and there is no tax limit."

"In terms of car weight tax in the car holding stage, the island government has also used some smart tricks. In the island country, the car holding stage is taxed based on the car weight, which is very beneficial to island cars that are known for their lightweight..."

Listening to Zhao Guoyang's talk about the island car, the leaders present kept nodding, looking thoughtful.

"In addition, the island government has taken many other measures to improve the competitiveness of domestic car companies, such as restricting the construction of imported cars' sales networks, or using complex and complicated car import procedures to hinder foreign car companies from entering the market."

"For example, the introduction of strict fuel economy requirements, the formulation of strict automobile emission standards, the new car replacement subsidy policy for domestic cars, etc...."

Zhao Guoyang paused slightly and then concluded: "It can be said that the island countries restricted their competitors by using different trade barriers in different periods."

"In this way, it not only won opportunities and seized the initiative for the development of the local automobile industry, but also provided experience for the development of the automobile industry in other countries."

Speaking of this, the big guys here have fully understood the non-tariff barrier policies of island countries.

Hong Wenqing stared at Zhao Guoyang for a long time, and couldn't help but sigh, "Researcher Zhao, today is really 'listening to you is better than reading for ten years'. After listening to your explanation, I realized that I, a tax person, need to understand and learn a lot!"

After hearing the boss's sigh, Zhao Guoyang said humbly: "Director Hong, you are so serious. I just saw these in newspapers and magazines, but I don't deserve your praise..."

Seeing this, Fang Xuesen, who was standing by, smiled and patted Zhao Guoyang on the shoulder and said, "Guoyang, don't be humble. Your explanation just now allows us to understand the importance of non-tariff barriers in the automobile industry."
Chapter completed!