| Author (Person) | Smith, Emily |
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| Series Title | European Voice |
| Series Details | Vol.12, No.8, 2.3.06 |
| Publication Date | 02/03/2006 |
| Content Type | News |
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By Emily Smith Date: 02/03/06 An EU threat to launch a trade challenge against the Chinese car industry has been simmering since the publication of a ten-year plan for the European car industry last December. The CARS 21 group, headed by the European Commission but with members from governments, industry, non-governmental organisations and the European Parliament, highlighted concern over foreign access to China’s automotive sector in its final report. It claimed that "[EU] industry encounters significant difficulties with the regulatory and business framework in China, which is the most promising emerging market for European automotive manufacturers". Obstacles listed in the report included ownership restrictions, barriers to imports, and "serious favouritism...towards domestic producers". It concluded that Europe should keep an eye on the Chinese car industry "with a view to assessing the possibility of success at an eventual World Trade Organization dispute settlement panel if the situation does not improve". The Commission said this week that no action had been taken since the report came out two months ago, which suggests that a longer observation period has been deemed fair. But in the meantime China is stepping up its attempts to move into the European market. Cars from the Chinese brand Chery, a state-owned manufacturer are to be assembled at a contract manufacturing plant in Kaliningrad from next month [April]. Initially, the cars will be aimed at the Russian market but a senior Chery executive was quoted in the car trade press as saying that: "We would eventually like to export to Western Europe from Russia." Article reports on a potential trade dispute between the European Union and China on access to Chinese car markets for the European industry. The CARS21 group had highlighted concern over foreign access to China's automotive sector in its final report. |
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| Source Link | http://www.european-voice.com/ |
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| Subject Categories | Business and Industry |
| Countries / Regions | China, Europe |
