China has exported its first shipment of compact cars to the US, it was reported on Monday.

The Tianjin Automotive Xiali Co. delivered its first shipment of 252 Xiali economy cars to be distributed by American Automobile Network Holdings Inc. in the US, Xinhua News Agency reported late Monday.

The report said that Tianjin Automotive's deal with the US company involves the export at least 25,000 Xiali cars over the next five years.

The Xiali is produced by Tianjin Automotive as part of a joint venture manufacturing deal with Toyota Motor Corp..

Tianjin Automotive is counting on the Xiali's competitive advantages of price and reliability to help the company successfully land on the US market, the report said.

The export deal comes as Tianjin Automotive struggles in China 's auto market due to a price war among domestic manufacturers and an increase in foreign imports.

In the first quarter ended March 31, Tianjin Automotive posted a net loss of 31.4 million yuan (US$3.79 million), compared with a net profit of 30.5 million yuan a year earlier.

Competition in China 's car market is expected to become increasingly more intense as car tariffs are gradually reduced as part of China 's World Trade Organization commitments.

(China Daily June 11, 2002)