Chinese auto makers must boost foreign links to face WTO challenge: DRC's Lu

BEIJING (AFX-ASIA) - Domestic car makers must deepen cooperation with foreign car companies to help deal with the challenges of WTO entry, Lu Zhiqiang, deputy director of the State Council-affiliated Development Research Centre, told an auto industry conference, the China Daily reported.	    He said the industry, which has been earmarked by the government as one of the "pillars" of the national economy, will be able to survive, even though it is not as efficient or competitive as the big foreign auto groups.	    China's WTO entry will lead to a cut in tariffs on auto imports from between 70 and 80 pct to 25 pct by mid-2006.	    "But we do not have enough time to establish an internationally competitive auto industry by ourselves. We have to increase our competitiveness while we are opening up to our foreign counterparts," Lu said.	    There is little possibility of China setting up an integrated and independent auto industry given the mergers, acquisitions and alliances in the world auto industry, he added.	    Consequently, domestic companies must deepen their cooperation with foreign companies and "engage more strongly in the world market".	    Chen Jianguo, an official from the State Development Planning Commission told the conference it was wrong to think China must set up an "independent national auto industry".	    "We should give more development opportunities to all forms of automakers including joint ventures and exclusively foreign-funded enterprises," he said, adding that more joint ventures may be launched over the next few years. 

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