The government yesterday tightened requirements on domestic
carmakers and trading companies to qualify for car exports.
From March 1, car exporters will have to apply for an export
license from the Ministry of Commerce every year.
Automakers will be required to meet domestic manufacturing
standards, get the compulsory CCC quality certification and provide
after-sales service abroad.
Trading companies also need to be authorized by a qualified
manufacturer and committed to jointly shouldering responsibility
for overseas sales.
The move is expected to restore order to China's "dynamic but
disorderly" car export market, according to Zhang Ji, deputy
director with the ministry's Department of Mechanics, Electronics
and High-tech Industry.
Exporters will have to renew the license every year licenses
will not be granted if serious quality problems are found in their
products the previous year.
Zhang said the government will tighten requirements further if
necessary.
Customs figures show that China exported some 293,000 vehicles
in the first 11 months of last year, up 88.8 percent year-on-year.
They were spread across 182 countries and regions. Developing
countries in Africa and Southeast Asia topped the target
markets.
Of the 1,175 car exporters last year, 669 sold less than 10
vehicles overseas and 204 sold only one.
Since not all car exporters were qualified to manufacture in
China, the industry saw poor service, rampant price wars and
speculation.
China's average sedan export price declined nearly 20 percent
year-on-year to $6,740 in the first 11 months last year.
"The establishment of the new rules is expected to eliminate
about 700 car exporters," said Zhang.
He added that it will also help to improve the average quality
of the country's vehicle exports and rebuild the image of
"Made-in-China" brands.
Most of the eliminated firms would be trading companies because
the current standards are not strict on domestic vehicle
manufacturing. The new car export regime imitates that for
motorcycle exports, which was implemented last year.
Although China was the world's largest motorcycle manufacturer
for 12 years and the largest exporter for five years, the unit
price of exported motorcycles was dropping until the export
management regime was put in place.
(China Daily January 10, 2007)