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The Means of Auto Industry to Cope With Problems After China WTO Accession

October 19th, 2010 at 03:08 am

The young automobile industry needs protection.I’ll Have What Professionals Having: links of london
China auto industry is confronted with many negative competitive factors in terms of the foreign trade, technologies and prices. Katy Perry’s pandora jewelry , Take a Look and Make a Comment In the case of the foreign trade, China's auto trade deficit is considerable; In relation to the developement of technologiess, China has comparatively low capabilities of new product development in sedan industry. When considering the price, our country`s cars` price is generally lower than the same import car styles, while owns no essential price advantage. Once we have entered the WTO, the customs will decrease greatly in a few years, and the price advantage of China-made cars will be all gone.
Based on the above-mentioned three aspects, China`s immature auto industries are still in great need of protection. The policy of continuing the high tariff is the main measure. The car tariff in our country is as high as usual. Thus for the basic requirements of an early close to the WTO , China has gradually reduced the level of car tariffs. However, the custom duties of other industrial products have declined largely a few years ago, while the total decline of cars is relatively smaller, so tax rate of China`s cars will probably fall. However, considering that the auto industry is still in the immature phase and needs to be protected, it could be estimated how difficult it will be to give way more on the tariffs.
Joining the WTO will be good to structural adjustment in our auto industries. These promoting effects can be analyzed from two aspects: the first is company structure, the second is product structure. In manufacturer structure, since automobile industry policy issued by us, we have stressed training economical automobile and big automobile manufacturers. Along with the opening of market, famous motor corporations constantly enter into china and inevitable bring about the change of domestic manufacture`s structure. But such changes are limited; the previous situation that domestic large cars make up main parts doesn't seem to change a lot. Since these foreigh big automobile manufaturers mostly have close relationship with our big automobile group.
In term of the entire cars, among all the car types, the car industry is influenced the most.
At present owning sedan concept include Shanghai Automotive, FAW and Changan Automotive, among which FAW is ranking top in the demostic 500 enterprises. The FAW Car is a Chinese ethnologic brand. It produced a large group of new products adapting to the Chinese basic condition with the help of the First Automobile Group`s developing power. However, the design and manufacture of new products still do not get rid of the operation manners and management systems limits of the First Automobile Group. It should be emphasized that the company's products mainly locates on the high value-added high-end cars. This determines that the company will form face to face competition with foreign manufacturers, so it will suffer from bigger pressure and challenge. We should be confident that after the accession to WTO, there will be an apparent change on domestic auto consumer market in a short time and the conditions for quick development of mini car accordingly become more mature.

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