China Cuts Property Tax

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A rundown of the news making headlines in and around China:

Property tax: China has decided to lower the home purchase deed tax to as low as 1% for first and second homes in a bid to boost activity in the housing market. The duty on properties of 140 square meters or less will be 1% starting Dec. 1, and above that size will be 1.5% for first homes and 2% for second homes. Residents planning to buy second homes in China’s four biggest cities — Beijing, Shanghai, Guangzhou and Shenzhen — will be among those who gain the most from the new policy, as a 3% rate is currently levied in all four cities. The reduction is part of a package of tax policies announced Wednesday aimed at bolstering the property sector, whose slump has weighed on the world’s second-largest economy in recent years.

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China will reduce home purchase deed tax to promote the housing market, effective Dec. 1, with rates as low as 1% for first and second homes.
Huawei offers a promotion for its Advanced Driving System for 199 yuan monthly, aiming to boost sales and customer experience.
President Biden and President Xi are scheduled to meet during the APEC forum in Peru to discuss U.S.-China tensions.

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Who’s Who

Huawei Technologies Co. Ltd.: Huawei Technologies Co. Ltd.'s smart car solutions unit is promoting its Advanced Driving System with a discounted monthly price of 199 yuan until the end of November, down from the original 720 yuan. The system, similar to Tesla's Full Self-Driving, could lead to fewer jobs in the industry due to its reduced manpower needs. Huawei's system, considered among China's leading but expensive, is used in cars by partners like BYD Co. Ltd. and Avatr.

Tesla Inc.: Tesla Inc.'s Full Self-Driving system is similar to Huawei's Advanced Driving System, providing an end-to-end solution that closely mimics human driving.

BYD Co. Ltd.: BYD Co. Ltd. is an electric vehicle (EV) giant and one of Huawei's Smart Selection partners. Huawei's Advanced Driving System (ADS) is installed in BYD's cars, enhancing its smart driving capabilities. BYD is listed with the stock code 002594.SZ.

Avatr: Avatr is an EV brand that collaborates with Huawei, as its Advanced Driving System is installed in cars made by Avatr. As part of Huawei’s Smart Selection partners, Avatr benefits from Huawei's smart car solutions, which include leading technologies in the smart driving industry.

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What Happened When

November 13, 2024：: China announced a package of tax policies, including a reduction in the home purchase deed tax starting December 1, 2024.

Through the end of November 2024：: Huawei's smart car solutions unit is offering a promotion on its Advanced Driving System for a discounted monthly price.

By December 1, 2024：: The home purchase deed tax in China will be reduced to as low as 1% for properties of 140 square meters or less; properties above that size will have a tax of 1.5% for first homes and 2% for second homes.

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