Uncover China’s auto export strategy

“Will there be pennies from heaven? I don’t believe it” Wang Ke told the reporter on the phone.

Wang Ke, who is in charge of the overseas market in one self-owned brand auto company, was waiting for the preferential treatment since 2006, when his company was entitled as the export base of automobile and its parts by the Ministry of Commerce，China Business reported.

But 3 years have passed, there is no such preferential treatment. In addition, due to the economic downturn, in the first half of 2009, the amount of export of their company has fallen off sharply more than 50% compared with the same period from last year.

“I heard that the provincial department of commerce will support the export base with more than one billion RMB，it’s not merely hearsay. ” said Wang ke.

“The plan will be released very soon, not waiting until the end of year ”The hearsay was confirmed by an official of the Ministry of Commerce.

According to China Business newspaper, the national strategy of auto export being drew up mainly by the Ministry of Commerce is called “the overall strategy of China auto export”, including promoting the export ability of self-owned brands, strengthening the innovation ability, and more importantly, making the transformation of the ways to achieve trade growth. Some stage aims are set up in the plan. By the year of 2011, the amount of export will increase by 20% annually; by 2015, 15% and by the year of 2020, the amount will increase by 10%. “We do not only have the objects, but also detailed measures”, An insider, who got involved in the discussion of the overall strategy, revealed to the reporter of China business journal.

In the international forum on Chinese automotive industry 2008, Zhou Shejie, vice chief director of Department of Mechanic, Electronic, and Hi-Tech Industry, the Ministry of Commerce proposed 8 policy measures to promote the export of Chinese automobile. In the annual meeting of china auto parts afterwards, the official of Department of Mechanic, Electronic, and Hi-Tech Industry expatiated on 7 measures to promote the export: building up the sharing platform, supporting brand construction, giving credit assistance, defusing the risk, backing the export base, providing information service and implementing the strategy of going out.

Except the whole strategy, some new contents are added. According to the insiders, the Ministry of Commerce is speeding up the negotiation for the free-trade area aiming against the trade protectionism. Although facing a lot of difficulties, the government never stops promoting the negotiation. The free-trade agreement will be signed between China and Norway, China and Costa Rica in the second half of the year or the first half of next year. The two countries will become China’s first free-trade partner in Europe and Central America separately.

“We don’t worried about the export declining in a short time, maybe it's good for us, which will be favorable to our industry”,Wang Ke felt a little relieved when he heard about the national strategy.(Yalong)

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