The U.S. is preparing new tariffs against all remaining Chinese imports if talks between Presidents Donald Trump and Xi Jinping fail. New tariffs against all goods from China might be announced in December. They would target the $257 billion in imports from China which are not already under tariff.
China is looking to reduce its car taxes from 10% to 5%.
A tax cut equal to 1 percent of GDP next year would be at least 827 billion yuan. China has already had 1.3 trillion yuan of tax reductions estimated by Beijing for this year.
China is offsetting the reduced exports from tariffs with tax cut economic stimulation and allowing the yuan to devalue. The yuan has devalued by about 10% since April.