Tuesday, March 28, 2006

China exports take aim at Australia

CHINA'S car-makers will target Australia as the Chinese auto boom turns bust, a Shanghai-based automotive analyst says.Excess capacity in the auto sector and government pressure to export would see Chinese vehicles sold here within three years, Paul French, founder of business information firm Access Asia, said this week.
"Basically, they've been ordered to export. All China's car-makers have massive overcapacity at the moment and if they can't shift their cars the government's going to slap some limitations on them," he said. "The government has now said that it's going to control output and several new plants have had quite strict limits put on their licences. Prices are falling to silly levels and car-makers are losing a significant amount of money."
He said the lack of barriers to imports meant Australia would become a testbed for Chinese exports to the west.
"From China's perspective you guys look pretty good," Mr French said. "America is a problem because of the unions, Europe is a problem because of the welter of anti-dumping actions and trade sanctions in the European Union. There are nasty rows already around shoes and textiles, and it's broadening."
Last year China became a net vehicle exporter for the first time and two makers, Geely and Chery, have announced ambitious export programs. Geely will begin US sales in 2008 and Chery will start next year. Spy shots of a Chery SUV testing in the UK recently appeared in specialist press overseas.
But Mr French said joint ventures between Chinese and foreign firms were under even greater pressure to export and could sell through the existing sales channels of their Western partners.
Australia's 1 million annual sales made it one of the most significant national markets outside the US and Europe, Mr French said, with similiar levels of buyer affluence and expectations. "Australia would appeal to a lot of people as a good western market test case. For Chinese exporters it's a place to gain experience before taking on the big markets."



Anonymous Anonymous said...

some joint chinese auto tried in Australia before but i think they failed

12:14 PM  
Anonymous Anonymous said...

do you think chine will be an important trading partner of australia in the future?

2:02 AM  
Blogger mobin said...

China is moving quickly to reinvest the cash it has been collecting from exports around the world, and regardless of whether the latest rumour is true.There have already been 56 Chinese cross-border acquisitions, worth $US24.5 billion this year, within reach of last year's record total of $US29.8 billion. In export of chinese car market Australia been targeted for export of chinese cars, off coursr last year China became a net vehicle exporter for the first time .

3:23 AM  

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