System limits car exporters
By Dai Yan (China Daily)
Updated: 2006-06-29 08:48

However, industry insiders pointed out that prices of exported sedans and cross-country vehicles have sharply dropped, indicating a severe "price war" among Chinese car manufacturers.

Zhang said China's car producers don't adjust their cars according to the rules and conditions of the importing countries.

To support local car exporters, he said his department is working on  an information platform of overseas auto markets. It is collecting material via the ministry's 100 economic and commercial offices worldwide.

Zhuang Yuxian, manager of Dongfeng Commercial Vehicle Company's overseas market department, said the company was working out strategies for key markets.

China's auto exports climbed by more than 120 per cent last year to overtake annual imports for the first time.

Exports of Chinese-made vehicles were largely trucks  accounting for over three-quarters of the total  with exports of sedans and cheap small cars also climbing.

China-based companies currently export vehicles mainly to developing nations in Africa, the Middle East and Southeast Asia, but also plan to export to the more competitive United States and European markets.

Zhang also said that a strategic alliance would be established between the China Ocean Shipping Corp, the China Export and Credit Insurance Corp and major automobile exporters to promote auto exports.

Export credit insurance companies should play a larger role in export promotion and increase credit support to car producers, he added.

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