King of Industry

  Chapter 553 The important role of non-tariff barriers to trade

  In the conference room, when Zhao Guoyang and Hong Wenqing talked about some issues of the island government’s tariff policy on imported cars, Yao Gang from the Ministry of Foreign Trade was a little puzzled.

   "Guoyang, does the government of the island country really implement a zero-tariff policy for imported cars from abroad? Then those domestic auto companies, such as Honda, Toyota, Nissan, etc., are not going to be under great pressure?"

   "Although the level of the island country's automobile industry is definitely much higher than ours, compared with the European and American powers, it may not necessarily have an absolute advantage, right?"

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

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

  At this moment, after Minister Yao asked Zhao Guoyang, he also shot Zhao Guoyang a questioning look.

   Noticing the gazes of the big shots, Zhao Guoyang began to explain unhurriedly.

He raised his fingers and said, "Leaders, although the island country implements a zero-tariff policy for imported cars, it seems to be very open and confident in the auto market, but its non-tariff barriers effectively block foreign cars from the island country. outside the market."

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

   “Foreign brands including Renault, Peugeot-Citroen and their South Korean rivals Hyundai and Daewoo accounted for only about 4% of total car sales out of the 4.07 million vehicles sold in the island nation.”

"The sum of all other foreign brands is only about 1% of the total sales volume. At first glance, such a figure does not match the open auto tariff policy of the island country, but in fact, it is a perfect non-tariff policy of the island country. A corollary of trade barriers..."

  Listening to Zhao Guoyang's eloquent talk, Hong Wenqing was surprised for a while.

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

  Just as Zhao Guoyang closed his mouth, the head of the police Zhu Yiming couldn't help asking: "Researcher Zhao, what exactly is this 'non-tariff trade barrier' you just mentioned? It sounds amazing!"

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

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

"Comparatively speaking, non-tariff barriers are currently adopted by more countries due to their various forms, strong concealment and more discriminatory nature. Island countries have always been recognized by the world as the most successful countries in using trade barriers to protect their industries one."

  “In particular, the island country’s auto trade barrier measures have played a role that cannot be ignored in the rapid development of its auto industry, and finally made the island country one of the world’s auto powers.”

   Speaking of this, Zhao Guoyang smiled and said: "Just explaining this way may be a bit empty and boring. Well, let me give you an example to explain to the leaders based on the reports in this newspaper!"

  Zhu Yiming naturally nodded in agreement when he heard the words, and several other big shots also nodded one after another, listening intently.

Zhao Guoyang sorted out his thoughts, and then gestured: "According to the situation pointed out in this report I read, light vehicles with a displacement of less than 660cc account for about 1/3 of the car sales in the island country, and these models, the United States and the United States European car companies almost never produce."

  When Zhao Guoyang said this, there was a burst of discussion in the conference room.

Another tycoon from Liaodong Province, Lu Xinmin, asked in confusion: "Researcher Zhao, why do these car companies in the United States and Europe give up this small-displacement light-duty car? It is obvious that this model is sold in island countries. Very good, if you don’t make money, are they fools?”

  Lu Xinmin's question basically represents everyone's aspirations.

  After he asked, all the big shots nodded in agreement.

  After the voices of everyone's discussion gradually faded away, Zhao Guoyang explained unhurriedly: "Before answering this question, I think everyone should first understand how the island country's auto tariff barriers developed."

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

  “Because the models produced by the island car company are mainly small cars with a small wheelbase, the island country imposes higher tariffs on imported small cars.”

"During the 1960s, the tariff rate for small cars with a wheelbase of 2700mm and below was 40%, while the tariff rate for cars with a wheelbase of more than 2700mm was 35%; the tariff rate for small trucks with a wheelbase of 2540mm and below was 30% The tariff rate for trucks with a wheelbase of more than 2540mm is 27%.

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

  Hearing this, Gao Tongzhou was puzzled for a while: "Infant industry? How strange is this name?"

  Zhao Guoyang glanced at Deputy Mayor Gao, and said with a smile: "Yes, this 'infant industry' is a concept derived from foreign trade in order to protect the country's basic industries."

   "Generally speaking, if a certain industry is unable to compete with foreign companies due to lack of experience in technology, low productivity, and production costs higher than the international market price."

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

  After Zhao Guoyang's explanation, the bosses in the meeting room finally understood the general idea.

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

   "It was not until the island country's automobile company developed and fully equipped with export capabilities that the island country government gradually liberalized its domestic auto market."

  "In 1970, the island country reduced the tariff on small cars with a wheelbase of 2700mm and below to 20%. In 1971, the island country's car tariff was reduced to 10%. In 1972, the automobile tariff was reduced to 8%."

   "By 1978, the island country completely abolished automobile tariffs. As of now, the island country's automobile tariffs are all zero."

  When Zhao Guoyang said this, the bigwigs in the conference room were a little stunned.

  Yao Gang couldn't help but exclaimed: "It turns out that the government of the island country has already started to deploy the small-displacement car market decades ago. No wonder American and European car companies are gradually not involved in this market..."

  Zhao Guoyang gave a "hmm" and nodded: "In addition to making a fuss about the car displacement, before the 1980s, the island country levied goods tax on cars, which is roughly equivalent to our domestic purchase tax."

   “15% on small passenger cars, 30% on mid-size passenger cars, 50% tall on premium passenger cars…”

  "In the initial stage of car consumption in the island country, which is dominated by small passenger cars, this policy also played a great role in inhibiting the sales of European and American cars."

   Zhao Guoyang has explained to this point that Hong Wenqing, a senior official of the National Taxation Bureau, has already convinced him.

  He never expected that he would discover such a talent when he was pulled over to participate in such a seminar on the automobile industry.

   No, talent alone can no longer be described. This "Researcher Zhao" is simply a "know-it-all" existence, which is amazing.

  Zhao Guoyang didn't know what Hong Wenqing was thinking. He continued: "In addition, although the island country has adopted a zero-tariff policy for imported cars, it also has taxes in terms of ownership and use..."

"Currently, the car tax in the island country in the car ownership stage, the passenger car is taxed according to the displacement, which is divided into 10 sections. The larger the displacement, the more the tax is charged, and the annual tax amount can reach up to hundreds of thousands of days. Yuan."

   "As for commercial vehicles, the tax is levied according to the maximum load. The model with the larger load is taxed more, and there is no upper limit for the tax amount."

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

  Listening to Zhao Guoyang's eloquent talk about Daoguo Automobile, all 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. For example, restricting the construction of sales networks for imported cars, or using complicated and cumbersome car import procedures to hinder foreign car companies from entering the market."

   "Another example is the introduction of strict fuel economy requirements, the formulation of harsh vehicle emission standards, the new car replacement subsidy policy that is beneficial to domestically produced cars, etc..."

   Zhao Guoyang paused for a while, and then concluded: "It can be said that the island countries restricted their competitors by using different trade barriers at different times."

  “In this way, it not only wins opportunities for the development of the local auto industry, but also provides experience for the development of other countries’ auto industries.”

  Speaking of this, the bosses here are fully aware of the non-tariff barrier policy of the island country.

Hong Wenqing stared at Zhao Guoyang for a long time, and couldn't help sighing: "Researcher Zhao, today is really 'listening to what you say is better than reading for ten years'. After listening to your explanation, I realized that I am a tax man. , there is still a lot to learn!"

  Hearing the boss's sigh, Zhao Guoyang said humbly: "Ju Hong, you are too serious. I just read these things from newspapers and magazines, but I can't deserve your praise..."

Seeing this, Fang Xuesen smiled and patted Zhao Guoyang on the shoulder and said, "Guoyang, don't be modest. Your explanation just now made us all understand the importance of non-tariff barriers in the automobile industry. "

   "It is no exaggeration to say that you taught us a good lesson!"

  (end of this chapter)