**Russia Cuts Back on Chinese Car Imports**
Russia has decided to limit the number of Chinese cars being imported into the country. This move could be bad news for Chinese car makers and traders who have been selling a lot of cars in Russia.
**Why is this happening?**
China has been a close economic partner with Russia, even during its war against Ukraine. China has supplied Russia with important goods and helped keep its economy stable despite Western sanctions.
**What’s changing?**
In 2022, not many Chinese cars were being sold in Russia. But last year, Chinese car exports to Russia increased sevenfold compared to the previous year. This was because Western countries had put sanctions on Russia, making it harder for Russian people to buy cars from brands like Volkswagen and Toyota.
**What’s happening now?**
To slow down the number of Chinese cars being imported, Russian authorities have raised fees for most passenger cars by $7,500. These fees will keep going up by 10-20% every year until 2030. The government has also blocked one type of Chinese truck because it didn’t meet safety standards.
**What does this mean?**
Russia’s biggest car maker, Avtovaz, says that new car sales in Russia might go down by 30% next year if interest rates stay high. This could make it harder for people to buy cars, and that’s why the government is trying to limit Chinese imports.
