The Chinese government will boost the automobile market by optimizing market environment, expanding supply channels, upgrading the consumption structure and developing the aftermarket, an official told a routine press conference on Thursday. 

Illustrations: VCG

Gao Feng, a spokesperson for the China's Ministry of Commerce (MOFCOM), said there will be more moves to increase parallel imports of automobiles, lift restrictions for second-hand car ownership transfers, as well as aftermarkets such as car racing, driving tours and automobile modification. 

The State Council, China's cabinet, announced on Sunday that it would continue to suspend additional tariffs levied on US vehicles and auto parts.

The heads of state of China and the US met during the G20 Argentina Summit and reached an important consensus on economic and trade issues, Gao said. 

As part of the consensus, from US postponing the tariff rate at the beginning of this year to the US announcement that it would delay the deadline for increasing the tariff rate on Chinese products on March 5, to China’s goodwill gesture, these decisions of both countries will undoubtedly help create a good atmosphere for Sino-US economic and trade consultations, he added. 

China slashed its value-added tax rate from 16 percent to 13 percent on April 1.

For the manufacturing industry, with the VAT reduction policy in place, some auto companies lowered the price of vehicles, and the prices of related products, such as oil prices and auto parts. As a result, the costs of cars and car usage have been reduced. Car manufacturers can now invest more to create better services. The VAT cut is conducive to improving automobile consumption, Gao said. 

China sold 1.19 million passenger cars in February. 

Authorities in east China's Jiangxi Province called for prudent investments in automobile projects in March.