After the tax reduction, China's auto parts are all * favored country tax rate of 6%. On the tariff reduction of auto parts, a number of listed companies have responded through the interactive investor relations platform. Dongmu shares said that the reduction of import tariffs on whole vehicles and parts of the country has no impact on the company; Polone said that the tariff reduction has no direct impact on the company, and the resolution of relevant matters is conducive to the development of the company's business in North America. Wolong said the tariff reduction on imported cars had no significant impact on its performance. Precision forging technology said that the current stage of the company's products more than 20 percent of exports, indicating that the company's products have a strong competitiveness, the relevant tax policy has little impact.

Bank of China International said a uniform tax rate of 6 per cent would reduce the cost of importing most components by 3.6 per cent. The major automotive components imported from China in 2017 include gearboxes and their components, engine components, automotive lighting and signalling devices, automotive electronics, etc.

Reporters from a number of involved in gearbox, engine parts and automotive electronics business of the listed companies learned that the tariff reduction on the impact of business is not obvious.

An auto analyst at a mid-sized brokerage said the tariff cuts would have little impact on domestic component makers because most auto parts are now domestic and only a few key parts are imported. Domestically produced auto parts are in the middle, while imported auto parts are mainly high-end, which belong to the competition of different categories.

Huatai Securities said that according to the data of China Academy of Commerce, the cumulative import of auto parts in China was about 37 billion US dollars in 2017. It can be estimated that imported parts accounted for about 9% of the average material cost of the whole vehicle, that is, about