China's vehicle exports slide due to trade barriers

(chinatrucks.com, September 23, 2009)China, Asia's biggest auto market, said vehicle exporters face "a severe situation" after a 57% slide in shipments partly due to rising overseas trade barriers, Bloomberg reported today.

China's auto exports plunged 57% in the first seven months of the year to 191,000, Zhou said. The tally has fallen for 12 straight months, said Zhou Ruojun, deputy director, overseeing exports of machinery and electric products at the nation's commerce ministry.

"Protectionism has been re-emerging," she said. The global recession has heightened concerns about protectionism, with the World Trade Organization in July urging governments to prepare steps for supporting domestic industries that wouldn't impede cross-border trade.

The Ministry of Commerce is working to deal with the problem, and may implement guidelines for the country's auto exporters. The guidelines will urge exporters to set up sales networks, perfect after sales services, and adjust business structures.

Although China's car exports only accounts for 3% of the world total, and 2% of China's total exports, the potential for growth is huge, thus the government should make long-term plan to stabilize car exports.

Chinese automakers such as Geely Holding Group have started to target overseas markets as rising competition shrinks margins at home.

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