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)