China Automotive and International Market Forum: Chinese cars need to go out


In late April, the “China Automotive and International Market High-Level Forum” organized by the China Council for the Promotion of International Trade, representatives from Pakistan, Vietnam, and Russia expressed their desire for Chinese cars in an enthusiastic speech and welcomed Chinese auto companies. Going out to invest and build factories in their countries, they have started joint ventures and cooperation in various ways. Russia's demand for foreign autos has increased The demand for foreign cars in Russia has continued to grow. In 2003, 170,000 new foreign cars were sold (in 2001, 110,000). "China's rapid development in automobile manufacturing and the advanced technology already in Russia will have a positive impact on Russia-China cooperation in automobile manufacturing," said Lukashen, the Russian business representative office in China. At present, China has successfully introduced the Russian "Ural" off-road vehicle chassis technology. Last year, it has cooperated in the production of a large number of "Ural - North" new off-road trucks. Recently, China's Changchun FAW Group Co., Ltd. has formulated a plan to use the "Ural" chassis to produce new cars, and will begin implementation at the end of this year. “Outside Volga Engine Factory” and Nanjing Iveco, China are working on a joint project to install Russian 2.4 to 2.6-liter engines on the “Iveco” brand van produced in China. At present, the two sides are formulating plans to establish cooperative production projects in Russia. Pakistan welcomes Pakistani Amin, the first secretary of the Pakistani embassy in China, said that Pakistan is very willing to see China playing an increasingly important role in Asia’s economic stability and development. He believes that there are at least three factors that attract Chinese companies to invest in Pakistan: First, the Chinese people are familiar with Pakistan's various aspects. At present, at least 60 companies have set up offices in Pakistan. 2. There is a huge market in Pakistan and its surrounding areas. With the improvement of Pakistan-India relations, Pakistan will become a gateway to India and the Middle East. Third, Pakistan has a very favorable investment policy. Capital can enter and leave freely, and profits can be remitted without any restrictions. The government also adopts preferential policies on relevant taxes. At present, Pakistan has become one of the fastest growing countries in Asia, with a GDP growth rate of 6%. In the early years, Chinese motorcycles have had a good reputation in Pakistan. At present, the country is in great need of Chinese cars, trucks, light commercial vehicles and cheap Chinese domestic brands of cars will be welcomed. The government hopes that Chinese companies will invest and build factories locally. Except for some special parts and components that require localized production, the import of other parts and components will enjoy preferential tariffs. Vietnam Stops Approval of Foreign Investment New Vehicle Factory Vietnam is one of the first choices for Chinese companies to go global, and bilateral economic and trade exchanges have been frequent in recent years. According to Pan Yubao, commercial counselor of the Vietnamese embassy in China, the Mitsubishi Research Institute predicts that by 2005, Vietnam will need 650,000 cars. Among them, cars account for 40%, passenger cars and trucks account for 60%. At present, there are 11 foreign automobile assembly plants and 5 domestic assembly plants in Vietnam. According to Vietnam's development strategy for the automotive industry in 2010, Vietnam has stopped approving foreign investment to establish a new automobile assembly plant in Vietnam to control the scale of foreign-funded enterprises and support the development of domestic enterprises. According to the current Vietnamese policy, Chinese companies can cooperate with Vietnam in two ways: First, export parts. It is possible to supply automotive spare parts, automotive assembly production lines and technologies to five local automobile assembly plants in Vietnam and expand the production scale of these assembly plants. 2. Looking for a joint venture between Vietnamese partners, powerful Chinese companies can acquire Vietnam's existing assembly companies and expand their production scale. At the same time, the “Tonghuang Automotive Industry Park” that was built in May 2003 will also be a good opportunity for Chinese companies to enter Vietnam. The first phase of the industrial park will build "Vietnam Hyundai Motor Manufacturing Plant", "80-400 HP Diesel Engine Production Plant", "Automobile Safety Glass Manufacturing Plant", and "Automobile Clutch Manufacturing Plant" with a total investment of 52 million U.S. dollars.

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