Lower tariffs are set to encourage a Chinese export boom in auto parts and complete vehicles - and also help to reduce the trade imbalance.
China's fast-growing automotive industry makes up only a tiny part of overall exports - but that is set to change.
The government is expected to boost auto exports as part of the nation's policy to narrow the trade imbalance.
According to the Ministry of Commerce, China recorded exports of US$969 billion in 2006, compared with imports of US$792 billion, netting a massive trade surplus of US$177 billion.
To restructure its exports, the nation has cut export tariff rebates on raw materials and energy-consuming products while offering higher rates for high-tech and processed agricultural products.
And that means good news for Chinese auto makers.
Last year, China's total exports of automotive products grew 42.7 percent to US$28.1 billion, according to the China Association of Automotive Manufacturers.
Exports of automotive parts and components reached US$21.5 billion, far beyond the US$12 billion projection by Ministry of Commerce in 2005.
In the future, parts exports are expected to grow aggressively by 20 percent annually, as global auto makers, including General Motors Corp, Ford Motor Co, Volkswagen AG, Toyota Motor Corp, and DaimlerChrysler AG, ramp up their parts-sourcing operations in China.
"All of these original equipment manufacturers have set up sourcing operations in China, and all have expressed their desire to source billions of dollars of more parts in the coming years," said Timothy Dunne, analyst at Automotive Resources Asia Ltd (ARA), a division of J.D. Power and Associates, in a recent report.
The vast majority of these parts were for aftermarket applications, and 60 percent of the total spend was for chassis/drivetrain and electrical/electronic parts.
Submit Your Requirements, We Are Always At Your Service.
- BYD Stopped the Production of Fuel Vehicles
- Geely Began Test Runs of Green E-methanol Vehicles in Danmark
- 2022 SANY Global Dealer Summit Was Held Successfully Online
- BYD and Shell Partner on EV Charging across China and Europe
- Daimler Truck Significantly Increase Sales, Revenue and Net Profit in 2021
- Scania Year-end Report January-December 2021
- Hyundai Motor and Iveco Group Sign MOU to Explore Future Collaboration
- GAUSSIN Enters China, the Largest Truck Market in the World
- Over 1,200 Hydrogen-powered Vehicles Deployed for the Beijing Winter Olympics
- Chinese New Year Holiday Closure Notice
C&C Trucks Co., Ltd.
C&C Trucks Co , Ltd (C&C Trucks), located in Sanshan Economic Development Zone, Wuhu, Anhui Province, a holding company under China International Marine Containers (Group) Co , Ltd (CIMC), is a large heavy truck enterprise integrating the research and development, production
- China's Truck Exports Grew by 30% YOY to 63490 Units in January-February
- China's New Energy Heavy Trucks Grew Despite an Overall Slump
- Heavy-duty Truck sales in China Fell by 54% to 54,000 units in February
- SINOTRUK Achieves Sales of 27,725 Vehicles in January, 2022
- China’s Domestic Tractor Sales Exceed 40,000 Units in January
- 2021 JAC International Pickup Export Performance
- JAC Achieved a Great Result in 2021
- China's Truck Export in 2021 Reached a 10-year Peak
- Heavy-duty Truck Sales in China Fall 57 Percent on Year in January
- China Recorded Sales of 645000 Tractors in 2021