On May 29th, the Shanghai Municipal Government released the “Action Plan for Accelerating Economic Recovery and Revitalization in Shanghai”, which introduced relevant policies to promote car consumption and resume work in the supply chain of car and other manufacturing enterprises.
The first item of the fourth point of the action plan, “Vigorously Promote Consumption and Accelerate Recovery”, is as follows:
Vigorously promote car consumption, with an additional quota of 40,000 non-operational license plates for passenger vehicles within the year. According to national policy requirements, reduce the purchase tax on some passenger cars in phases. Before December 31, 2022, for personal consumers who scrap or transfer their small passenger cars registered in Shanghai and meet the relevant standards, and purchase pure electric cars, a financial subsidy of RMB 10,000 per vehicle will be given. Support the development of car rental business. Improve the registration and filing, as well as vehicle trading registration, management regulations of the second-hand car market entities. (Responsible departments: Shanghai Development and Reform Commission, Shanghai Transportation Commission, Shanghai Public Security Bureau, Shanghai Finance Bureau, Shanghai Taxation Bureau, Shanghai Economic and Information Commission, Shanghai Commerce Commission)
“Comprehensively and Orderly Promote the Resumption of Work, Production and Market” mentioned the resumption of work and production in the upstream and downstream of the supply chain of car and other enterprises:
Support manufacturing companies such as automobiles, integrated circuits, and biomedicine to resume production in a coordinated and step-by-step manner with the help of a point-to-chain approach, and steadily increase the production rate of enterprises. Gradually promote the resumption of work and production in wholesale and retail, finance, transportation and logistics, real estate, construction and other industries, seize the agricultural season to promote the resumption of various agricultural production units, and promote the resumption of work in personnel-intensive industries such as catering, residential services, cultural tourism and exhibitions in an orderly manner after meeting the necessary conditions. Establish a mutual insurance mechanism for the production chain and supply chain in the Yangtze River Delta to jointly ensure a stable supply chain. (Responsible departments: relevant industry regulatory authorities)
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.