China the world's 4th auto producer

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Last updated at: (Beijing Time) Monday, April 05, 2004

China the world's 4th auto producer

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China has grown to be the fourth auto producer and the third auto consumer in the world after its auto industry experienced a rapid development in recent years, said Zhang Guobao, deputy director of the National Development and Reform Commission of China.

Should the current momentum be kept in the next five to six years, he unveiled, China's auto output and consumption would likely be second to that of the US only by 2010.

As learned from the Seminar on Expanding Auto and Auto Parts Exports held on April 3 in Changchun in northeast China, China's auto industry is running on a fast track of development and has become one of the pillar industries in national economy. It is contributing more to the national economy and playing a bigger and bigger role in improving the life quality of the people.

China has set a target of exporting automobiles and components worth 70-100 billion USD a year by 2010, or 40 percent of total sales in China at the time. For short-term goal, China expect to increase its exports of automobile and components to 15-20 billion USD next year.

But improvement should be made to fulfill those targets.

Zhang Guobao saw the situation in which more and more essential factors of production in China's auto industry went to a few auto giants, indicating that the industry was getting more and more concentrated. Some big Chinese players in the industry are in the process of merging into multinationals in auto business. In addition, foreign capital is marching into the Chinese market with bolder paces as China's domestic auto market is getting mature and keeps expanding.

Zhang also highlighted some lingering factors hindering the further development of China's auto industry. First, he said, the industry is still weak in self-initiated R&D and turning out whole vehicles while the production of accessory parts are facing with the same problem. Secondly, auto enterprises are small in scale. Fundamentally, there is still much too be done for improving the scattered, disordered and low-level auto industry in China. And thirdly, products are mainly absorbed in the domestic market and lack of international competitiveness.

By People's Daily Online

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