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China may phase out export tax rebates for electric vehicles, a move that could reduce tensions with Brussels. This potential policy shift, though not yet official, is being considered by analysts and industry insiders as a diplomatic tool.
China is expected to gradually phase out its current 13% value-added tax export rebate for electric vehicles, with step-by-step reductions beginning as soon as next year, according to Citi, citing China Passenger Car Association secretary Cui Dongshu.