Numerous western manufacturers of luxury goods, from Apple to Louis Vuitton, are lowering their prices in China. They are reacting to the reduced value-added tax that came into effect earlier this month. Apple iPhone customers can enjoy price reductions of up to 500 yuan (66.3 euros), according to the company's online price lists.
In January, Chinese electronics retailers had already offered rebates to iPhones to boost demand. According to local media reports, Louis Vuitton and Gucci products in the retail sector are now expected to be about three percent cheaper.
The German automakers Mercedes and BMW had already announced that they will offer cheaper after the tax cut a series of models in the People's Republic.
China announced that it would relieve companies of taxes and sales charges worth almost two trillion yuan in 2019. The measure is aimed in particular at companies in the industrial, transportation and construction sectors. This should help boost the cooling economy in the country.