China Plans To Revise Industrial Policy For Auto Sector

BEIJING April 29, 2003; Dow Jones reports that China's chief economic planning agency said it will revise industrial policies governing automobile manufacturers, in an attempt to come to terms with the massive growth of the sector in recent years.

With sales of China-made passenger cars soaring 50% on year to 1.1 million units in 2002, and sales in the first quarter of 2003 doubling on year to 383, 000 units, most automakers are now pursuing aggressive expansion and investment plans.

In a notice this week, the State Development and Reform Commission said the policy changes will be aimed at preventing "blind investment" and "pernicious competition" -- the government's preferred code words for excess capacity and price cuts.

"The previous automotive industrial policy no longer meets the needs of our country's automotive industry under the new trend of development," the commission said.

The commission said it would accept suggestions from industry and the public until the end of May.

Web site: http://www.sdpc.gov.cn