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Wednesday, December 29, 1999, updated at 15:46(GMT+8)
Business Chinese Automobile Manufacturers Prepare for WTO Entry

Chinese automobile manufacturers are developing new sedans as China seeks entry into the WTO.

Manufacturers say that sedans will be the focus of competition within the huge Chinese automobile market.

At an automobile fair in Changchun, northeastern Jilin Province, among the 160 different cars on display, including some imported cars such as Benz, Toyota, Nissan, and BMW, most are below 300,000 yuan (about 36,000 US dollars).

"Xiali" produced in northern Tianjin and Changchun Volkswagen's "Jetta", for example, range between 60,000 and 100,000 yuan (12, 000 US dollars).

The newly developed "Xiali" costs 92,000 yuan (11,000 US dollars). It can reach a speed of 165 km with five liters of gas per hundred km and is considered the best choice of sedan for ordinary Chinese families.

Some domestic producers say that China is highly competitive with its heavy-duty trucks, but it will be difficult to compete with foreign sedan manufacturers in production and costs.

Specialists say that some major parts of domestic cars such as engines are imported or use manufacturing techniques from abroad, so it is yet unrealistic for the Chinese market to independently develop high-class sedans. However, it is possible for China's nascent sedan market to satisfy the needs of a growing urban middle class in China in the foreseeable future.

It is unlikely that imported cars will totally occupy the domestic market after China's accession to the WTO. (Xinhua)

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