Chinese banks and auto companies warned of market trend
( 2003-10-14 21:37) (Xinhua)
China's automobile production in the next five years is predicted to far
surpass demand, and the government hopes banks and enterprises will correctly
judge and respond to the market, said an official Tuesday.
Zhang Xiaoqiang, secretary-general of China's National Development and Reform
Commission, told the first annual meeting of the US-China Business Dialogue that
China was expected to become the world's second biggest auto market with a
predicted demand of 6 million by 2007.
However, he said, if present and planned auto production capacity was
realized by that time, the output of automobiles would reach 15 million,
triggering a "misfortune" for China's banking and auto manufacturers if the
output far surpassed the demand.
The output of automobiles in 2002 reached 3.25 billion, 30.8 percent more
than 2001, with the output of cars increasing 55 percent, he said.
Zhang said the output of automobiles would surpass 4 billion, up 20 percent
this year.
The US-China Business Dialogue was set up Tuesday by the Chinese Council for
the Promotion of International Trade and the US Chamber of Commerce. Annual
meetings will be held in China and the United States by turn.
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