As described in the news article (https://edition.cnn.com/2018/12/14/business/china-us-auto-tariffs/index.html), after placing additional tariffs on cars in July, China has now decided to reduce these tariffs on a temporary basis for the next three months.

1. What is the purpose of Chinese's policy? Please explain the economic theories related.

2. What might be the effect of reducing tariffs? Please evaluate in terms of pros & cons, long-term & short-term effects.

Mullen, J. "China is temporarily slashing tariffs on US auto imports | CNN business."CNN, December 15,2018, edition.cnn.com/2018/12/14/business/china-us-auto- tariffs/index.html.