Sales of passenger cars, including sedans, multi-purpose vehicles and sports utility vehicles, rose 70.5 percent to 832,600 units, Dow Jones Newswires reported, citing the China Association of Automobile Manufacturers.

But passenger cars sales in July were slightly down from 872,900 units sold in the previous month, the industry association's figures indicated.

Commercial vehicle sales, which rose 44.2 percent on year to 253,000 units, were also down from the 269,200 units recorded in June.

For the first seven months of the year, vehicle sales rose 23.4 percent from the same period a year earlier to 7.2 million units, the industry association said in a statement.

China's total car sales outstripped the United States to become the world's largest car market for the first time in January, helped by Beijing's efforts to stimulate domestic consumption.

These measures included slashing taxes on cars with engines smaller than 1.6 litres and subsidising alternative-energy vehicles.

The country's auto sales grew 17.7 percent to 6.1 million units in the first half of the year and is forecast to hit 11 million for the whole year, according to the association.

earlier related report
US debates plan for stiff tariffs on Chinese tires
US authorities heard debate Friday on plans to slap punitive duties on tire imports from China to save jobs at home, in a litmus case for President Barack Obama's trade policy amid protectionism fears.

A packed public hearing at the US Trade Representative's (USTR) office followed a June recommendation by the quasi-judicial US International Trade Commission for tariffs of up to 55 percent on Chinese passenger and light truck tires.

The commission made the decision based on a petition led by the United Steelworkers Union that Chinese tire imports had tripled since 2004, forcing plant shutdowns and the loss of 5,100 jobs.

"Our workers cannot compete when the market is is being overwhelmed by a massive flood of tires from China," Leo Gerard, president of the United Steelworkers Union, argued at the one-day hearing.

"In short, this industry is in a turning point and relief will determine this industry's future."

Citing Obama's promise to assess each trade case on its merits, Gerard said the government should demonstrate to American workers and families "on the frontlines when an import surge hits that they won't be treated like mere cannon fodder."

But the largest Chinese tire manufacturer warned in a statement Friday that the Obama administration would be violating its own stand against protectionism if it accepted the tariff proposal.

"Accepting the commission's proposed remedy would put the administration at odds with its public statements about refraining from taking protectionist measures in response to the global economic meltdown," said Vic DeIorio, executive vice president of GITI Tire (US), a Singapore-based company which is the largest manufacturer of tires in China.

"It is important to remember that in this case, there are no allegations of unfair trade practices, nor are there allegations that anyone has violated US trade law," he said.

The American Coalition for Free Trade in Tires, which represents the tire distribution and retail sectors, argued that 25,000 American jobs, mostly in the tire distribution and retail sectors, would be lost if the duties were imposed on the Chinese tires.

"For every job 'saved' by this protection, up to 25 jobs will be lost," said Dennis King, chairman of the coalition. "This is due to the fact that the tariffs recommended by the ITC will cost US consumers an additional 600 to 700 million dollars per year for tires."

The International Trade Commission, an independent, quasi-judicial federal agency with broad investigative responsibilities on trade matters, decided on June 18 that rising Chinese tire imports were disrupting the US market.

The commission has submitted its investigation report to Obama and US Trade Representative Ron Kirk last month. Friday's hearing was the final event in the investigation before Obama makes a ruling.

Kirk's office said Friday it would work with other government agencies "to determine whether a remedy is appropriate, and if so, what kind of remedy be recommended."

It will submit its recommendation to Obama by September 2. Obama is required to make a decision within 15 days after receiving it -- just ahead of hosting Chinese President Hu Jintao at a Group of 20 leaders' meeting in Pittsburgh.

If Obama rejects the tariff proposal, he will disappoint unions, which are a key support base, and some leaders in his Democratic Party. And if he embraces the plan, he will anger China with one of the first major trade disputes between the two powers in the Obama presidency.

Beijing could also retaliate against US exports at a time when the world's largest economy is reeling from prolonged recession.

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