Auto city to aid global sourcing
10/12/2003 15:47
The Shanghai International Auto City, currently under construction in
the Jiading District of the city's northern area, will function as a global
sourcing platform for the auto industry, an Austrian delegation said after an
inspection trip last week to the site.
In the Australian eyes, after its
completion five years later the auto city will become Asia's largest
comprehensive auto industry center. Then the auto city will be able to handle
US$10 billion worth of global purchases for overseas auto makers as well as
domestic companies, they add.
China will become a key purchasing market for
the world's auto makers, as global purchasing in the country is estimated to
reach US$30-50 million each year. US Ford Motors Corp, for example, has revealed
a purchase plan of US$10 billion here.
The auto city, after completion, will
facilitate the purchase, which has remained difficult so far because of the lack
of a unified purchasing center in the country.
While aiding global
purchasing, the auto city will also provide solutions for the domestic auto
industry to combat their overseas rivals, according to market analysts.
From
2006 China will scrap the import quota system and other protective measures in
the auto sector as agreed to in its negotiations for entry into the World Trade
Organization.
Jane Chen / Shanghai Daily news
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