Shanghai starts "parallel import" pilot for foreign cars

Chinadaily  reports a scheme to allow parallel imports into Shanghai's free trade zone, which is apparently designed (and how can it fail to do so?) to force down the prices charged for imported cars. There has been plenty of controversy over the prices charged particularly by European manufacturers in China, and at the same time dealers have been demanding compensation from manufacturers as the market slowed down - an idea that some European dealers will find amusing, although most will probably find it extraordinary that such a claim might ever be entertained.

Opening the market to parallel imports is obviously the best way to help the hard-pressed dealers. It will be interesting to see how this pans out. Parallel imports were hardly welcomed by dealers in the UK during the 80s and 90s when they were at their height.