China's Vice Commerce Minister Wei Jianguo calls on domestic automotive manufacturers to promote independent research and development (R&D) capability in order to make the nation a major global complete vehicle and auto parts supply base at an auto forum in Changchun on September 15.

The forum on Chinese-owned Automotive Brands was jointly organized by the Ministry of Commerce of China, China Association of Automobile Manufacturers and Jinlin's Department of Commerce. The heads of major homegrown auto brand manufacturers including FAW Group Corporation, Hafei Motor, Brilliance Jinbei Auto Co, Chery Automobile and Great Wall Motor were in attendance.

China has become the fourth largest auto manufacturing country in the world. Presently there are more than 5,800 auto and auto part manufacturers with combined assets of over one trillion yuan (US$126 billion). China's auto production and sales accumulated 571 million and 576 million respectively, and the total production value reached 1.2 trillion yuan in 2005.

Overall auto exports had maintained an average annual growth of over 40 percent from 2000 to 2005, and homegrown brand complete vehicle saw exports outstripping imports for the first time in 2005.

However, China's auto industry still greatly lags behind that of developed countries in R&D innovation, brand building, enterprise size and profits on exports, the vice minister said. China's auto exports merely accounted for 1.1 percent of the world auto trade volume and 7.3 percent of the nation's auto industry value in 2005, while developed countries such as Japan and Germany sold over 40 percent of their auto products overseas. Technology and emission standard as well as safety regulation in developed countries have been big problems for Chinese auto exports, Wei added.

Presently China will continue focus on exports of labor- and raw material-intensive auto parts, trucks, buses and medium and low grade passenger cars. Upon this, high-tech auto parts and complete vehicles under independent intellectual rights are expected to gradually contribute to take a larger proportion in the exports. Large automakers are encouraged to establish assembly factory, R&D center, sales and after service network in foreign countries.

In order to expand overseas market for Chinese brand complete vehicle and auto parts, the Ministry of Commerce in cooperation with the National Development and Reform Commission are prepared to build exporting bases, hold international auto parts trade fair and issue policies benefiting auto export's sustainable development.

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