China's automotive industry builds powerful competitive edge

13:37, July 07, 2011      

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Since China joined the WTO 10 years ago, its automotive industry has accomplished its most outstanding and fastest development in its history. A powerful competitive edge in the automotive industry has also been established.

Looking ahead to the next 10 years, it is foreseeable that China's automotive industry will continue to make even greater progress, said Liu Shijin, associate director of the Development Research Center under the State Council during a press conference for the release of the "China Auto Blue Book 2011" held on July 5.

Liu said that after China joined the WTO at the end of 2001, China's automotive industry seized the new opportunities and established a preliminary competitive market environment by using China's policies of opening up to promote internal openness and innovation of the industry. The competition reduced costs and prices, and expanded the market and consumption.

Then, the expanded market further promoted the economics of scale effect in production. As a result, China's automotive industry has stepped on a road where production and consumption promote each other and the development is accelerating.

From 2002 to 2010, China's output of vehicles had increased from nearly 2.1 million to 18 million, making China the largest automobile production and consumption country in the world. In China's auto industry, Liu believes that the construction of production capacity, the development of related systems, research and development, as well as production management levels and the construction of self-owned brands have all improved much while the output was increasing.

The automotive industry has become a leading industry in China's national economy and is playing a guiding and supporting role in the overall national economic situation.

Liu noted that China's automotive industry is still facing many problems and challenges, such as energy consumption, environmental pollution, traffic security and urban traffic congestion. Among all the problems facing the automotive industry, the most challenging is how to properly handle the relations among the government, automakers and the market.

The Department of Industrial Economics under the Development Research Center of the State Council, the Society of Automotive Engineers of China and Volkswagen's China operations jointly compiled the 2011 blue paper. This is the fourth in a series of annual reports on China's automotive industry, the first of which was released in 2008.

Based on a large amount of detailed and authoritative statistics and extensive market research, this blue paper provides a comprehensive account of the development, achievements, and experiences of China's automotive industry in the past 10 years since the country's accession to the WTO and offers predictions of the future of China's automotive industry in the next decade through analysis of the domestic and international market situation.

By People's Daily Online

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