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The IMPACT OF JOINING WTO ON
CHINA’S AUTO INDUSTRY
Outline
• 1. WTO main principle on China’s auto imports
• 2. How do China’s auto industries really work under the principles.
• 3. Prospect for China’s auto industries development.
WTO MAIN PRINCIPLE ON CHINA’S AUTO IMPORTS
Part 1
220% to 25%Unforgettable Memory
China's Auto Import Tariffs
19861988
19901992
19941996
19982000
20022004
20062008
0%
50%
100%
150%
200%
250%1993 High-emission Auto 220%
2001 High-emission Auto 80%
2008 High-emission Auto 25%
Low-emission AutoHigh-emission Auto
Gloomy Predictions…Lower tariff
Foreign autos get more competitive power
Gain more China’s auto market
Domestic carmaker are difficult to survive
57% of the experts believe that auto industry will receive
enormous impacts of joining WTO.
Is WTO a Coming Wolf?
The truth is the opposite
HOW DO CHINA’S AUTO INDUSTRIES REALLY
WORK UNDER THE PRINCIPLES?
Part 2
In fact…
In 2005, Chinese car exports top imports
Exports more than doubled to 135,000 units between January and October while imports fell 1.6% to 128,000
The percentage of imported car in China’s auto market
2001 6.0%
2007 3.7%
In 2009, China is the world’s largest car producing country.
Thus, joining WTO may have some positive impacts on the industry
Positive Impacts
Structure
Structure
• To accelerate the auto to adjust the industrial and product structure
• After the Changan Automotive adjust it’s structure in 2001,the sales is growing 15% on average
Strategy
Dongfeng Citroen
FAW-Volkswagen
Hyundai-Beijing
Changan Mazda
Cooperation
Dongfeng Citroen
The average growth rate of
its market share is 10%
FAW-Volkswagen
The growth of production and selling is 30%-50% per year
Hyundai-Beijing
After the cooperation of Beijing
Automotive Industry and Hyundai , it
growth well even during the market’s
10 year dismal
Changan Mazda
The average growth rate on sales after the join of FAW is
10%
Policies
• China’s entry into the WTO means the competition between China’s car companies and foreign counterparts will be more intense.
• Thus, some supporting policies come on. For
example, purchase tax is 8.547% on domestic cars and 10% on foreign autos
PROSPECT FOR CHINA’S AUTO INDUSTRIES
DEVELOPMENT.
Part 3
Policies'
protection and encour
age
Corporation’s develop new auto
Maintain the ascending
trend
Policies' protection and encourage
Policies•Maintain Tariff Rate
•Encourage Auto Export
•Stimulate Consumption
Corporation’s develop new auto
• Develop New Energy Vehicle
• Manufacture Luxury Car
Corporations
Review
• 1. WTO main principle on China’s auto imports
• 2. How do China’s auto industries really work under the principles.
• 3. Prospect for China’s auto industries development.
Thanks
Rain 08533261Kitty 08534535
Reference
http://chintena.files.wordpress.com/2009/04/246-wto.jpghttp://www.hiyp.com.tw/news/html/6338.htmlhttp://www.chinadaily.com.cn/china/2009-07/09/content_8401265.htmhttp://www.chinapress.net/newscenter/2007-09/23/content_17404.htmhttp://news.bbc.co.uk/2/hi/business/4502098.stmhttp://wheels.lowyat.net/2009/07/10/china-is-worlds-largest-car-producing-country/