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The Nexus
BUSINESSJul 20 · 10:00 UTCSCMP CHINAHuizhao Huang

China’s EV industry rose with the aid of tax breaks. What happens when they end?

China is ending tax exemptions that fueled the rise of its electric-vehicle (EV) and solar industries, which could increase production costs and pressure manufacturers as Beijing aims to curb overcapacity and price wars. The tax could add about 1,000 yuan (US$147) to the cost of producing an EV.

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