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China planning 8 auto export bases
2006-08-20 20:18:29 Xinhua English

BEIJING, August 21 -- China plans to establish eight auto export manufacturing bases to help automakers achieve their ambition to expand globally, a report said Friday.

The government has chosen 160 auto and auto parts makers for the project, the official Xinhua News Agency reported, citing Vice Premier Wu Yi.

China's passenger car exports more than tripled to 34,455 units in 2005 from the previous year, making it a net exporter of vehicles for the first time. But most of the cars were shipped to developing nations and failed to meet standards in Western markets such as the United States.

The plan to focus on eight export bases, chosen by the Ministry of Commerce and National Development and Reform Commission, is intended to improve the industry's structure and promote technical innovation, Xinhua quoted Wu as saying.

They include Shanghai, where both General Motors Corp. and Volkswagen AG have joint ventures; the northeastern city of Changchun, headquarters for major automaker FAW Corp.; Chongqing, home to Chongqing Chang'an Automobile Co., and Central China's Wuhan, where Dong Feng Group is based.

The others are the southeastern city of Xiamen, home to Xiamen Golden Dragon; Wuhu, home to private automaker Chery Automobile Co.; Taizhou, production center for Geely Automobile Co., and Tianjin, where Japan's Toyota Motor Corp. has a joint venture with FAW.

More than a decade ago, the government announced plans to develop local manufacturers into a world-class auto making industry. Since then, auto production and ownership have exploded.

But the industry remains fragmented, riven by regional protectionism and heavily dependent on foreign technology. Despite their ambitions, few domestic automakers are thought to have the wherewithal to meet stringent safety and environmental standards in top overseas markets.

(Source: Shenzhen Daily/ Agencies)

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