China Announces $72B Package of Electric Vehicle Tax Breaks

Image copyright: Rutger van der Maar [via Wikimedia Commons]

The Spin

Anti-China narrative

China is getting desperate to spark better auto sales and more consumer spending. The PRC's economy, which is the second largest in the world, isn’t growing as fast as it would like, so it’s attempting to artificially increase demand. If this doesn’t work, it may have to rethink its approach to the post-COVID financial world.

Pro-China narrative

Things are going swimmingly for China’s economy, especially in the electric vehicle realm, so, of course, it’s going to continue offering tax exemptions. Sales of Chinese electric vehicles increased 60.2% year on year in May, and the first half of 2023 has witnessed nearly a 50% increase in purchases. The tax exemptions work.

Metaculus Prediction


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