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China's automakers calm about WTO entry
( 2001-09-06 10:33 ) (8 )

China's automakers, undaunted by the country's upcoming entry to the World Trade Organization (WTO), have moved to prepare themselves for the new challenges and opportunities.

Changchun, the capital of northeast China's Jilin Province, known as the cradle of China's auto industry, opened its auto market early this year to automakers based in other Chinese cities and provinces.

The move is described by analysts as "far-sighted and correct", as potential auto buyers here now have a wider choice.

"We must break local protectionism first, if we want to maintain sound development and open up further to the outside," said an advisor to the Changchun-based First Automobile Works (FAW) Group, China's largest automaker.

On the other hand, automakers in China are making efforts to upgrade their products, to compete in the international market.

During the recently concluded "Second Changchun International Auto Show", the Shanghai-based GM Automobile Company has exhibited three upgraded versions of the Buick, and many other domestic backbone automakers have put on display new products with improved cost-effectiveness.

International auto giants are also taking the opportunity to expand their market share. Germany's Volkswagen Group has announced a plan to manufacture new products in its joint ventures based in Changchun and Shanghai.

Today, more upgraded automobiles with state-of-the-art technologies, such as the Audi A6 and Passat B5, are being produced in China.

"With the challenges and opportunities to be brought by the WTO, China's auto industry, once a fledgling industry sheltered by high tariffs, will usher in a new age of technological upgrading and product development," said an executive of FAW.