China Mulls Stimulus as Car Sales Drop

The video discusses the surge in car sales in 2015 and the subsequent slowdown in the Chinese auto market. It highlights a proposal by China's National Development Reform Commission to cut sales taxes on cars with smaller engines, which could stimulate the market. The news has already impacted global car makers like VW, Ford, and Daimler positively. The slowdown is partly attributed to the trade war affecting consumer confidence and policy confusion. The proposed tax cuts aim to refocus consumer interest and potentially boost the market, benefiting both Chinese and international automakers.

What potential effect could the proposed tax cut have on the Chinese auto market?

What confusion has arisen among consumers due to the actions of Chinese policymakers?