On Friday, state media said that since the World Trade Organization ruled last year that higher tariffs on imported auto parts were grossly unfair, China might cut these tariffs from next week.

If this step is taken, then the four-year-old regulations that increase the tax on the imports - if they make up too large a share of the finished home-made automobiles - would come to an end.

A joint statement would be issued on Tuesday by the commerce ministry and other government agencies claiming the end of the rule.

Nearly 10% of tariff on imported auto parts is levied by China; however, since April 2005, it has put a higher charge of 25% if the imported parts account for 60 percent or more of the finished product's value.

A 25% of tariff is also levied on the import of finished automobiles.

In July 2008, the WTO’s Dispute Settlement Body said that China's policies were not in agreement with the group's rules - a decision welcomed by the United States, which brought up the complaint along with Canada and the European Union.

China appealed against the ruling; however, in the month of December the WTO’s appeal body said in Geneva that it upheld the original decision.

Subsequent to the verdict, China had been asked by the United States to respect the ruling and to get rid of the tariffs.