Formal Policy on Development of Automotive Industry
Formal Policy on Development of Automotive Industry
Formal Policy on Development of Automotive Industry
March 12, 1994
The policy is aiming at building China's automotive industry (including motorcycle sector) into a pillar industry of the national economy by changing the current scattered investment, small-scale production and backward products in the industry to raise the development capacity of the producer as well as upgrade their product quality and technology and equipment level in a bit of achieving a reasonable streamline industrial structure and economic scale of production in the industry. With implementation of the policy, China's automotive industry will lay down a sound foundation by the turn of the century and become a pillar industry of the national economy after two more Five-Year Plans Periods, that is by 2010, to bring up the rapid development of the relevant industries.
CHAPTER I THE GOAL OF THE POLICY AND KEY DEVELOPMENT PRODUCTS
Article 1 The State is to guide the automobile enterprises to make good use of both domestic and overseas funds and open up and expand domestic and international market under a diversified and economic scale of production to meet over 90 percent of domestic demand by 2000 with output of sedans accounting for more than a half of the total output and basically meeting the household demand, and motorcycles basically meeting the domestic needs and exporting a certain amount.
Article 2 The State is to encourage a gathering of investment and an industrial restructuring in the industry so as to avoid the excessive number of manufacturing factories, scattered investment, disorder in examination and approval of automobile projects, duplicated import of low-level products and the low speed in construction of State-designated key factories and localization of products. The goals in stages are: in the Eight Five-Year Plan period, the stresses will be put on prompting the State approved assembly and auto part manufacturing projects to go into operation as soon as possible and creating conditions for accelerated development of China's automotive industry; by the turn of this century, through support by the State, 2-3 automotive manufacturers (or enterprise groups) will be developed into large producers of a considerable strength, 6-7 automotive manufacturers (or enterprise groups) will be developed into domestic backbone enterprises of the industry, and 8-10 motorcycle manufacturers will be built into key enterprises to both meet domestic and international market demands so as to achieve of a new system of decreasing number of producers, mass production and orderly competition among a small number of large enterprises on the market with the domestic three top sellers of a same kind of cars (according to the classification of the QC/T59-93 industrial standards) accounting for over 70 percent of the automobile market, and before 2010, under the guidance of the State, the large and backbone enterprises will be integrated into 3-4 large automobile as well as 3-4 large motorcycle conglomerates to join in international competition under own efforts of development, production and marketing:
Article 3 Key development products:
1. Auto parts and components: key parts and components of sedans
2. Passenger automobiles (Class M): economic sedans and special chassis for large and middle-sized passenger coaches
3. Trucks (Class N): special motor vehicles and new engines
4. Motorcycles (Class L): engines
5. Equipment: die sets
6. Basic components: casting and forging blank components
CHAPTER II VERIFICATION AND AUTHORIZATION OF PRODUCTS
Article 4 The State will effect control on the safety, pollution control and energy saving of automobile products (including motorcycles) according to the law.
Article 5 The State will adopt the international conventional verification of up to standards on automotive products (including motorcycles) the products without verification of up to standards shall not be allowed to be marketed, imported and used.
Article 6 The automobile enterprises should apply for verification and authorization in accordance with the requirements of "verification and authorization system for models of automobile products." The authorities responsible for verification of automobile products shall issue certificates and labels to the qualified products and publish the catalogue and the public security departments shall handle registration of new motor vehicles in accordance with the certificates and catalogues mentioned above.
Article 7 Automobile manufacturers are still responsible for all problems in designing and manufacturing after their products are qualified after the verification.
CHAPTER III STRUCTURE OF THE INDUSTRY
Article 8 The restructure of automotive industry is to promote conglomeration of automobile enterprises, serialization of products and specialization of production procedures; so as to make effective use of the automobile production bases in the country and bring into full play the initiatives of the central authorities, localities and enterprises, to avoid low-efficiency and blind competition and optimize structure of industrial organizations.
Article 9 The State encourages automobile enterprises to develop inter- department and inter-regional enterprise groups through assets merge, annexation and joint-stock system and accelerate reform of the corporate system based on reform of the property right system of the State-owned enterprises in a bit to establish a modern enterprises system.
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