System limits car exporters
By Dai Yan (China Daily)
Updated: 2006-06-29 08:48
China will limit the number of domestic companies able to export cars next
year, an official from the Ministry of Commerce said.
Zhang Ji, deputy
director of the mechanics, electronics, and hi-tech industry department under
the China's Ministry of Commerce, said the ministry is drafting a new system to
rectify automobile export orders. It will come into effect in
Under the system, the government will limit the number of
companies that can export vehicles through the use of export licences, he told
an auto industry forum in Beijing.
The system is aimed at protecting
firms from vicious competition.
It is expected that only companies with
a large enough export volume will be awarded export licences under the new
ruling, as smaller companies usually use price-cutting strategies to enter
foreign markets, which hurts the nation's interest.
output makes up 10 per cent of the world's total while its export volume
accounts for less than 1 per cent of the world's total.
In recent years,
however, the number of cars being exported is increasing rapidly, as Chinese
automobile manufacturers are facing an increasingly competitive market at home.
Producing so many vehicles, they need to export worldwide.
exported 62,628 automobiles in the first quarter of this year, up 139 per cent
from the same period in the previous year, according to statistics from the
Ministry of Commerce.
The total value amounted to US$647 million, an
increase of 204.5 per cent year-on-year.
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