Ma Kaima Xiuhong New York talks about the development of China's auto industry

Ma Kai, Director of the National Development and Reform Commission and Ma Xiuhong, Vice Minister of Commerce of the People's Republic of China, who was accompanying the Chinese Premier Wen Jiabao on a visit to the United States, held a joint press conference in New York on the morning of the 8th to discuss the development of the Chinese automobile industry and the trade deficit between the United States and China.

Ma Kai said that the Chinese government will soon introduce a new automobile industry policy, simplify administrative approval procedures, and encourage the merger and reorganization of the automotive industry. He said that this is good news for foreign automobile companies.

A reporter asked: Does China's auto industry have a "bubble" tendency? Will the Chinese government restrict investment in this area? Ma Kai answered that the rapid growth of China's auto industry is a good thing. Last year, China’s sedan production was 3.2 million vehicles, which is expected to reach 4.2 million vehicles this year. At present, the private sector is the main body of the Chinese automobile consumer market. This is a manifestation of China’s economic development and the upgrading of its consumption structure. The development of the automobile industry will also promote the rapid development of industries such as metallurgy, steel, and instrumentation.

However, Ma Kai believes that in the rapid development of China's auto industry, there are indeed some problems with "scattered" and "chaos." For example, in the thirty-one provinces, autonomous regions, and municipalities directly under the Central Government of the mainland, there are 22 automobile assembly plants. The average production scale of these plants is only 35,000 vehicles a year, and some of them are even under 10,000 vehicles. The Chinese government will not restrict the development of the auto industry, but it will regulate this situation and make the auto industry develop healthily.

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