China’s government will soon resume paying subsidies to rural residents who trade in old vehicles for new, fuel efficient ones, an official said on Monday.
Beijing has used such incentives before, as in 2009 when the government introduced a similar stimulus package with tax incentives for cars with engine sizes of 1.6 litres or smaller and subsidies for rural residents. That move spurred car sales and helped China surpass the United States as the world’s largest auto market.
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(Source: scmp.com)