China's auto industry has been sharpening international competitiveness while lowering car prices after entry into the World Trade Organization (WTO).

The remarks were made by Long Yongtu, secretary-general of the Boao Forum for Asia (BFA) and former WTO negotiator, at 2004 Automobile Industry Development Forum held Monday.

During the first year after China's WTO entry, China's domestically-produced cars had fallen in price in anticipation of cheaper imports and this will help the local car industry to set prices according to market rules after having enjoyed protective policies for years, Long said.

Meanwhile international auto multinationals have been entering or investing more in China with advanced technology and new models,which has boosted China's automobile industry, Long said.

The domestic auto industry has great potential, judging by the ongoing urbanization and global transfer of production centers towards China, Long said.

China's auto and parts (including motorcycles) exports hit 4.3 billion US dollars in 2003 and the figure will hit 15 billion to 20 billion US dollars in 2005 and 70 billion to 100 billion US dollars in 2010, according to statistics from the Ministry of Commerce.

Source: Xinhua