Auto exports will benefit as China’s marke

　　After the news China-U.S. strategic and economic dialogue is concluded and United States would “quickly recognize China’s market economy status” spread, in China executives from many vehicle and auto parts enterprises said that once non-market economy status of China moved away, the limitations on their exports will be greatly reduced and the space for export trade will be wide open as well.

　　Far-sighted private sector has begun to focus on investment potential of the auto parts industry.

　　Yesterday, the reporter was informed that a number of vehicle and auto parts enterprises in China are actively planning for export overseas, which is clearly different from a few months ago when many companies said although they were paying close attention to overseas markets, there were still worries about the trade protection barriers. When asked why their attitude got changed, one executive from a tire company said, “Previously, many overseas markets adopted trade protection toward Chinese enterprises is due to the judgment of China’s non-market economy status. If the United States and other overseas countries recognize China’s market economy status, a lot of trade frictions directed against Chinese products can be avoided. Despite recently high-level of the two countries agreed to the US will recognize China's MES promptly via the cooperative forum of the Sino-US Joint Commission on Commerce and Trade rather than the United States to quickly to recognize China’s market economy status, as long as China’s market economy status is acknowledged before the early 2016, Chinese enterprises will be able to seize more opportunities in overseas market. ”It is understood that, in accordance with the relevant provisions, till 2016, China’s export enterprises will be able to obtain market economy status or treatment automatically.

　　High level executives of China Aluminum Alloy Wheel manufacturers such as DAIKA, WANFENG and LIZHONG still remembered clearly this May, the EU non-market economy status prevent China Aluminum Alloy Wheels from exporting under the name of China’s non-market economy status. The European Commission released the preliminary ruling to China’s aluminum wheel anti-dumping case that they not only did not recognize all the sample enterprises’ market economy status, but also decided on May 11 to impose provisional anti-dumping duties of up to 20.6 percent on imports of aluminum vehicle wheels. On the right day, Zhejiang Wanfeng Aowei Auto Wheel Co., Ltd. announced immediately that, “influenced by this anti-dumping preliminary ruling, the sales in EU throughout the year are expected to decline by 40%. In January to April, our company achieved a sales income of 73.5613 million Yuan in EU while the original planning is 308 million Yuan. Now the company has to increase the supply of the domestic market as well as the expansion of other international markets such as Japan and the United States to compensate for the declination in the European market. ” meanwhile, the legal profession said “The preliminary ruling is too unfair. For example, the surrogate data are doubtful. EU has taken Turkey as a surrogate t country o judge whether China belongs to market economy while one Turkey enterprise is among the companies who bring judicial proceedings. Therefore, if China’s market economy status can be recognized, then these devastating 20.6% punitive tariffs will be reduced or even avoided. ”

　　Similarly to auto parts enterprises, China’s vehicle exports has also greatly troubled by “non-market economy treatment”. According to the data of China Automotive Industry Association, from January to April, China’s automotive exports are only 143,800 units, much less than that of the peak in 2008. What is more, these exports are mainly towards Eastern Europe, Africa and Southeast Asia, which, as the High executives of Great Wall Motor Group told the Shanghai Securities News, on one hand due to overseas financial crisis and on the other derived from trade protection policies of the developed countries and regions.

　　Recently, the reporter has found a number of independent-brand enterprises have accelerated preparations for the export issues, and are eager to enter the European and other developed markets. Great Wall Motor has stepped up to export to Italy, Germany, France and the United Kingdom. Foton established a solely- invested factory in Mexico in hope of entering the United States and other developed countries and regions. Besides, Foton will also build four solely- invested plants in India, Brazil, Thailand and Russia. Dong Haiyang, deputy general manager of Foton said, according to internal planning, since 2010, Foton will expand the scale of overseas spare parts assembly that partners will be raised from four to 15 and sales contribution be boosted to more than 30%. In the next two years, Foton will set up overseas wholly-owned factory or joint venture with after-sales service system. Brilliance Automotive Group also said had set up a center in Germany Frankfurt to manager the exports to Germany. Besides, this European Centre will be responsible for sales and after-sales service. Brilliance’s export scale in the future will be greatly promoted than previously.

　　Having seen the prospects of China’s auto parts business, Chen Jiwu, General Manager of Shanghai Vstone Investment Consulting was firmly optimistic about China’s auto parts industry in a forum of China Europe International Business School. Chen said, “Like other machinery industries, China auto parts industry has the advantage of labor and capital. China will certainly be the largest auto producer and consumer in the future. China’s highlighted competitive advantages and the industry’s demands for larger scale will make the emergency of multinational companies a natural thing. As long as we do not lag behind the advanced world level in the inputs of process, technology and equipment, we will never fail.”

　　(Translator: Yalong/Jessie)

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　　http://auto.sohu.com/20100528/n272397938.shtml