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Chinese government saves the world from the flood of cheap cars.

5879 Views 5 Replies 6 Participants Last post by  BringIt
http://english.qiche.com.cn/files/200607/02002.shtml

China to legislate against vicious auto export competition


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http://english.qiche.com.cn 2006-07-02〗




China will limit the number of domestic companies able to export cars next year, said the China Daily, citing an official from the Ministry of Commerce.

Zhang Ji, deputy director of the mechanics, electronics, and hi-tech industry department under the China\'s Ministry of Commerce, said a new system to rectify automobile export orders by the ministry is being drafted.

Under the system, which will come into effect in January next year, the government will limit with export licenses the number of companies that can export vehicles, the official disclosed in an auto industry forum in Beijing.

The system aims at protecting firms from vicious competition.

It is expected that only companies with a large enough export volume will be awarded export licences under the new ruling, as smaller companies usually use price-cutting strategies to enter foreign markets, which hurts the nation\'s interest.

(By Sam, China Auto News)
Wow, Chinese government blocking cheap Chinese auto export; I didn't expect this at all.
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Real_I_Hate_China said:
http://english.qiche.com.cn/files/200607/02002.shtml


Wow, Chinese government blocking cheap Chinese auto export; I didn't expect this at all.
What's so surprising about this? By limiting the number of cheap exports, the Chinese government has encouraged companies to merge together, has forced companies to reevaluate there capabilities, and has made them become more aware of the rigors of foreign competition. Next, the government will increase safety and reliability standards, again forcing companies to consolidate there resources. After the resources have become better consolidated, the Chinese government will follow up with a crack down on copyright infringements and make it harder for foreign competition in the domestic market. Furthermore, you must always remember that CCP's highest priority is and always has been saving face.
Jobs for today, by Real_I_Hate_China.

1. Google search on 'china, cars'.
2. Whatever turns up paste it into china car forums.
3. Regardless of the content, just write 'china cars are crap and chinese people are rubbish underneath it'.
TOO funny!!!!!!!!!!!

fightingtorque said:
Jobs for today, by Real_I_Hate_China.

1. Google search on 'china, cars'.
2. Whatever turns up paste it into china car forums.
3. Regardless of the content, just write 'china cars are crap and chinese people are rubbish underneath it'.

:rofl2:

And to fightingtorque.............:bow:
DOS said:
What's so surprising about this? By limiting the number of cheap exports, the Chinese government has encouraged companies to merge together, has forced companies to reevaluate there capabilities, and has made them become more aware of the rigors of foreign competition. Next, the government will increase safety and reliability standards, again forcing companies to consolidate there resources. After the resources have become better consolidated, the Chinese government will follow up with a crack down on copyright infringements and make it harder for foreign competition in the domestic market.
very good point DOS
This is a brilliant move by the Chinese government, kudos!!!

By setting such restrictions, it ensures Chinese autos exported to other countries achieve certain levels of quality, durability, and most importantly profitability. Plus, by doing so, it prevents Chinese autos from obtaining a foul reputation with cheap/crappy autos.
1 - 6 of 6 Posts
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