FAW wants to limit the expansion of foreign manufacturers in China
- Under the framework of the ChinesePeople'sPolitical Consultative Conference, Mr Li Weidou, the Imports and Exports Manager for the FAW Group (one of the threelargestChinesemanufacturing and assemblyfirms), has called for limiting the expansion and establishment of new foreign production capacities in China.
- Currently, foreignmanufacturersconstitute 70% of the private cars market and new manufacturers not yetestablished in China want to create joint ventures there (for example Renault withDongFeng)sotheycanproducetens of thousands of vehiclesthere.
- The new brands created over the last few years by Chinesemanufacturers have not been as successful as wasanticipated, and Mr Li Weidouthinksthat the profusion of brands iscreating a feeling of perplexityamongcustomerswhichmaybeproviding long-established brands with an advantage.
- Moreover, the increase in the capacities of foreignmanufacturers in China wouldoccurat the expense of 100% Chinesemanufacturers,who have more limitedfinancialresourceswhenitcomes to taking action on the samelevel.
- Mr Li Weidoualsocalled for stricterimplementation of the regulationlimiting the number of local partnersthat a foreign manufacturer may have to two.
