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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. Pakistan welcomes Pakistani Amin, the first secretary of the Pakistani embassy in China, saying 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. In the past, as a result of the war with Afghanistan, Pakistan’s economy has been hit hard. Now that the political environment has greatly improved, 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 already had a good reputation in Pakistan. At present, there is a great need for domestic autos in Pakistan, trucks, light commercial vehicles, and inexpensive local Chinese cars will be welcomed. The Pakistani government hopes that Chinese companies will invest and build factories locally. Except that some special parts and components need localized production, the import of other parts and components will enjoy preferential tariffs. Vietnam has stopped approving foreign investment Vietnam established Vietnam as one of the first choices for Chinese companies to go abroad. The economic and trade exchanges between the two countries 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. Cars accounted for 40%, passenger cars and trucks accounted 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 Automobile Industrial 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 be constructed with a total investment of 52 million U.S. dollars for the "Vietnam Hyundai Motor Manufacturing Plant", "80-400 HP Diesel Engine Production Plant", "Automobile Safety Glass Manufacturing Plant", and "Automobile Clutch Production Plant". Russia's demand for foreign cars continues to grow The demand for foreign cars in Russia continues 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. In the face of “the temptation to go outâ€, Chinese companies should be cautious and careful to attend seminars for dozens of heads of domestic companies’ import and export companies. In the face of the openness of these countries, many corporate representatives are filled with enthusiasm. Foresightedness has always been an indispensable strategy for companies to become bigger and stronger. To go one step further, look at two steps and think about three steps. Several responsible persons for import and export companies, who asked not to be named, said that they will refine their cooperation plans with these countries and accelerate the pace of going out of the country. However, some company representatives also expressed their concerns to reporters. Any government likes to attract investment. These representatives in China may reflect the views of their government and have strong political colors. Before investing in cooperation, it is imperative to visit the country in detail and understand the details. The general manager of import and export of a major automobile company said: “For example, we had already thought of building factories in Pakistan. Although the country’s foreign exchange policies are very free, they actually have a high demand for the local production of spare parts. This involves A series of problems, as well as a number of economically underdeveloped regions, the government has intervened in the formulation of the vehicle price, and it is required to make it affordable to its citizens. But who will be doing business at a loss? Business operations and economic assistance are not the same thing. "There is no doubt that "going out" has become a necessary path for domestic auto companies. But where and how to go, but also because of time and place. We must look at the big things and raise our legs high, but we must be cautious when we settle. He Beishi Source: China Automotive News