Chinese Auto Part Market Full of Business Opportunities

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Last updated at: (Beijing Time) Friday, June 14, 2002

Chinese Auto Part Market Full of Business Opportunities

The booming Chinese auto industry provides great opportunities for auto part entrepreneurs, experts say. Targeting China as a profitable market, approximately 500 corporations from overseas began their investment here, including those rising above their auto part peers.

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In addition to the chic (and slick) cars and royal limousines at the 2002 Beijing auto show, a wide range of varied auto parts were to catch the eye of shrewd business people.

Yellow car fuses on display were being made on the scene in the exhibition hall, different-sized tyres were hung on the walls, and colorful bulbs, steering wheels and car-chairs attracted many visitors.

The booming Chinese auto industry provides great opportunities for auto part entrepreneurs, experts say. Mainly located in Shanghai municipality, and provinces of Zhejiang, Jilin, Jiangsu and Hubei, more than 1,400 manufacturers make up the bulk of the Chinese auto part industry.

The global purchase of transnational auto giants has been seen in recent years, which benefit local small and medium-sized businesses.

Targeting China as a profitable market, approximately 500 corporations from overseas began their investment here, including those rising above their auto part peers.

Some labor intensive and raw-material-auto parts have been batch-exported from China, and the number of locally made parts being used in Chinese cars is increasing. Over 80 per cent of auto parts in the Chery car manufactured by the Shanghai Motor Corporation are made in China.

As China is now a member of the World Trade Organization, its tariffs on imported auto parts will be reduced from 25 per cent to 10 per cent in four years, and relevant import licenses will be canceled.

Lacking high-tech advantages, the Chinese auto part makers are still not well matched with foreign competitors, and thus face enormous pressure in years to come.

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