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| WTO membership has helped Chinese auto industry |
| CCTV.COM 2003-07-17 08:07:11 |
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Since China joined the World Trade Organization a year and a half ago, domestic auto producers have had to beef up their efforts to compete for market share with their international counterparts. But it is a healthy situation. At the Changchun auto fair, domestic exhibitors say China's WTO entry has actually helped promote China's auto industry.
Prior to China's entry into the WTO in late 2001, many people worried that the Chinese auto industry would be knocked out of existence by the international auto giants. But at the auto show held in Changchun, domestic exhibitors are saying that they are not suffering any serious effects. They are saying that the WTO entry has actually helped Chinese industries to mature in the market.
Exhibitor－－Chery Auto Co., Ltd said, "Before China's WTO membership, there was deep concern for domestic industries. But Chinese enterprises are growing up with the WTO entry. We have invested a lot of efforts in product development and service improvement. We now have the advantage of a nation－wide service network."
In order to comply with the WTO commitments, China must lower tariffs on imported cars to 25 percent starting from late 2005. Experts say the five－year transitional period is the time for domestic manufacturers to prepare themselves for the real competition.
Chen Qingtai, Deputy Director of State Council Development and Research Center, said,"China's WTO membership has given domestic auto producers a signal. That is if their products can not reach world standard, they cannot survive. So it prompts them to carry out research on how to strengthen their competitive edge."
Car manufacturers agree that more competition in the market is beneficial, in that it pushes them to develop their potential for product innovation. And in the broader context, this means that the consumers will get better products.
Exhibitor－－ Liebao Motor Co.,Ltd, said, "China's WTO accession is good for both the auto industry and other national industries. It stimulates them to stride forward. Of course, competition is a big issue. But the consumers will have good service and products. So the WTO membership invigorates our market."
Though auto manufacturers seem optimistic about the future of China's auto industry, they are well aware that the real competition has yet to kick in.
China's WTO membership is urging domestic car－makers to have long－term development strategies. And they seem well－prepared to face the challenge. But the real competition with their international counterparts will not start until they can develop without any government protection.
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Editor: Hou Meihong CCTV.com
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