Changchun to forge auto parts base
By Ji Lin (China Daily)
Updated: 2004-05-08 09:10

Changchun, also known as the car city in China, is set to add a 10-square-kilometre automotive accessories export base within the city limits in addition to constructing an international automobile production area in its southwestern region.

According to the Changchun municipal government, its total output of automobiles will reach 900,000 by 2005, realizing an output value of 150 billion yuan (US$18 billion).

And the output value of automotive parts will reach 30 billion yuan (US$3.6 billion), 15 per cent of which will be earned through exports.

As the capital city of Jilin Province, Changchun has now become the largest production, research and trade centre for modern automobiles and their components in China, with the latest technologies and widest range of varieties.

Today, 304 enterprises in the city are engaged in automobile manufacturing and 283 produce automobile parts.

Last year, they manufactured 641,000 automobiles, accounting for 14.4 per cent of the total output in the nation.

The total output for cars as a whole in 2003 amounted to 118.2 billion yuan (US$14.3 billion), while that of automobile parts reached 21.5 billion yuan (US$2.6 billion).

Besides being home to a raft of influential enterprises such as First Automotive Works, Changchun has also built a unique development zone focusing on automobile trade logistics.

It also has a well-known automobile part trading market, which boasts an annual trade volume of 4 billion yuan (US$483.6 million).

With years of engagement in automobile manufacturing, Changchun has accumulated an influx of experts and skilled personnel in the field.

Currently, the city has more than 100 research institutes and up to 6,800 researchers associated with the industry.

The local government has launched a joint training programme with the Chinese Centre of Hanover to train management professionals and automotive parts technicians.

In 2003, Changchun was approved by the State to establish a quality supervision and inspection centre on automotive parts so as to advance the quality of products from local enterprises.

About 100 local automotive part manufacturers have obtained ISO9000 Quality Certification.

With such solid foundations for long-term success in automobile manufacturing, Changchun officials are now planning to expand related exports.

The local government has established a special office for the automobile industry and organized a panel to study the development of Changchun's automobile industry as well as the establishment of an automobile parts export base.

In the meantime, city officials are putting more efforts into creating more automobile giants and large automotive accessory manufacturers through investment promotions, joint venture establishment, and mergers and acquisitions.

Technological innovation is another area that is drawing more attention from local authorities.

This year, city officials plan to allocate 11 billion yuan (US$1.3 billion) to projects relevant to the industry.

International partnerships on automotive part manufacturing are expected to increase, thanks to rising exports in that regard.

The Changchun municipal government is also committed to creating a public technological innovation service platform for automotive accessories.

A research and development centre is under construction, while current related product examination institutes are going to be upgraded.

At the same time, a public information service platform will be completed to provide more online services for enterprises, such as online purchasing and sales features.

Companies are also expected to obtain the latest information on policies in export destinations, along with their purchasing systems and rules.

The local government will allocate 50 million yuan (US$6 million) annually to establish a development fund for the automobile industry, which will be used to sponsor the development of key automotive part projects.

More aid will come from local financial institutes, which will be encouraged by the local government to provide better loan services.

Knowing well that an expansive sales network plays an important role in automotive part export, the Changchun municipal government continuously inspires the local enterprises to establish sales outlets and logistics centres abroad through co-operating with foreign agents or distributors.

The local officials suggested that the Chinese government should lend more support in raising the automotive part exports, such as laying out preferential policies, simplifying examination and approval procedures for foreign-funded enterprises who want to invest in the sector and obtaining more export quotas.

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