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Himfr.com Analyzes China's auto exports Situation in 2009

Date Published: 29th September 2009
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This year China has become the first major auto-producing country, is also the largest consumer market in the country. A comprehensive beyond the USA and Japan. The first quarter of this year, the global auto market slump, according to statistics the U.S. market fell by 30%, the Russian market fell by 40%, Japan and France have declined by more than 20%, Germany Yi Eryue copies of a downward trend, increased in March . Global markets are basically on the decline.

The export challenge:
This year China's exports had dropped substantially due to external and internal points. External causes:
(1) the entire international market has shown a significant degree of atrophy. Mainly reflected in the needs of the market itself less and exporters to spend a lot of inventory.

(2) exchange rate impact. Due to exchange rate impact, we had to rely on the price advantage is slowly losing. Therefore, the market share of certain circumstances, the exchange rate is the number one killer.
(3) difficulties in the credit crisis intensified. Consumption abroad, many are relying on bank lending. After the financial crisis, in addition to bankruptcy of many banks, many banks are raising the threshold of the loan. Many companies can not loan to buy products.
(4) trade protectionism. More covert trade protectionism in developed countries, mainly with the integration of the state's industrial revitalization in one; developing countries and some emerging countries trade protectionism more straightforward, mainly the improvement of the traditional customs duties, engage in licensing, quotas and other means.


Internal factors:
(1) The capability of independent innovation needs to be improved. Whole Vehicle R & D investment accounted for about 1% of the total investment was significantly lower than transnational group of 8% ~ 12% of the proportion of input.

(2) lack of quality and brand. We have introduced export qualification is to improve the quality of our products. Most businesses are now dependent on imports of the dealer to do after-sales service, resulting in many parts supply can not keep up, and some countries poor evaluation of Chinese brands. (3) The rapid growth of business entities. (4) The high cost of logistics affecting our competitiveness.

Export opportunities:
(1) international consumer-grade as a whole down. Slower growth in spending on luxury goods abroad, will increase the economic and practical product consumption. Therefore, China's exports of cars can replace some foreign luxury cars, a number of engineering machinery replaced the United States and South America a lot of second-hand car market. (2) The comparative advantage of China's motor vehicles and parts are still evident. (3) increased opportunities for mergers and acquisitions.

(4) the Government has launched a new automotive industry and the vibration of a series of policies to support exports. China has raised export tax rebate rate of six straight. In fact China's comprehensive tax rebate rate has reached 14.5%, higher than the actual tax rate (13%). The state will also be ready to raise the export tax rebate rate.

I am a professional editor from http://www.himfr.com/, and my work is to promote a free online trade platform.
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Tags: s market, exchange rate, global markets, atrophy, quotas, credit crisis, internal factors, financial crisis, developed countries, downward trend, auto market, price advantage, revitalization
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Source: http://www.articlealley.com/article_1132200_15.html
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