China to Extend Stimulus Efforts to Benefit Auto Industry

China is extending its stimulus measures for the automobile industry for another year.

The government announced the decision after an executive meeting of the State Council chaired by Premier Wen Jiabao, the China Daily newspaper reports.

The stimulus package was due to end Dec. 31. It includes a 50% cut in the 10% purchase tax for cars with an engine capacity of 1.6L or smaller, and subsidies for trade-in cars.

In minor changes to the package, the purchase tax ...