BEIJING: China has imposed an extra 10 percent tax on ultra high-end cars costing over 1.3 million yuan ($190,000) such as Lamborghinis and Ferraris, the government said, the latest step in a wide crackdown on conspicuous luxury consumption.
Under President Xi Jinping the Communist Party has overseen a sprawling campaign against graft and encouraged thrift among the country’s political and economic elites, targeting showy displays of wealth.
The new tax took effect Thursday and was intended to “guide rational consumption” and promote energy-efficient vehicles, the finance ministry said in a statement late Wednesday.
“The tax increase is a display of the government’s attitude of advocating frugality,” said Cui Dongshu, secretary-general of the Passenger Car Association, according to Bloomberg News.
China already taxes imported vehicles at a high rate, slapping a 25 percent tax on all foreign cars shipped to China.
The duties — and increased competition from cheaper domestic marques — have driven overall car imports down two years in a row, with 850,000 vehicles imported in the first 10 months of the year, down 6.4 percent from 2015, according to customs statistics.
But ultra high-end brands such as Ferrari have done well, with the Italian sports-car maker seeing a 26 percent surge in its second-quarter sales this year, with 160 units delivered.
The extra charge will likely hit Ferrari and brands such as Aston-Martin, Rolls-Royce, and Lamborghini, as well as top-end models of Mercedes and BMW.
Luxury carmakers have seen massive growth in China, the world’s largest auto market, despite the anti-corruption campaign.
They have also become potent symbols of the lavish lifestyles of the nouveaux riches during a time of surging wealth inequality.
Elite families often hire fleets of pricey cars for wedding processions, and wealthy second-generation heirs film themselves racing ultra-luxury sports cars in cities at night.
A notorious 2012 Ferrari crash that killed the son of a high-level official disrupted a once-in-a-decade party leadership change and precipitated his father’s downfall.
Reports said the son was accompanied in the car by two female passengers, one of them naked.
Some luxury dealers said they planned to stay open all night Wednesday to take orders before the tax came into force.
Passenger vehicle sales in China surged by an average of more than 12 percent annually from 2010 to 2015, but an economic slowdown has reduced the speed, with expansion dropping to 4.7 percent last year with total sales of 24.6 million.
China slaps new 10% tax on super-luxury cars
China slaps new 10% tax on super-luxury cars
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
