Jitters over a potential trade war between China and the U.S. have been alleviated to some degree as Beijing says it will cut tariffs on imported cars and auto parts.
The country's finance ministry made the announcement on Tuesday and will involve reducing duties on passenger vehicles from 25 to 15 percent starting from the beginning of July.
Chinese President Xi Jinping had indicated that such a move was in the works and the announcement came just days after China and the U.S. agreed to stop their recent trade disputes.
Carmakers have welcomed the move, but industry experts say Beijing's tariff cut is not as big as it looks.
They say the domestic market in China will continue to enjoy considerable protection.