Sponsored by the People's Government of Ningxia Hui Autonomous Region, the “2015 China-Arab Cooperation Forum” co-sponsored by the Automotive Industry Branch of the China Council for the Promotion of International Trade (hereinafter referred to as the “Automotive Trade Promotion Association”) and the Executive Committee of the China-Arab Expo, will be held in Ningxia on September 12th. Yinchuan City has come to an end.
At the China-Arab Automotive Cooperation Forum, officials from the Jordan, Egypt, UAE, Kuwait, Iraq, Mauritania, and other chambers of commerce represented; Chinese guests at the forum, including FAW, Dongfeng, SAIC, GAC, BAIC and Chang’an, attended the forum. Chery, Great Wall, Geely, Brilliance, Yutong, Zhongtong, Beiqi Foton, BYD, Lifan, CNHTC, Chongqing Xiaokang, Zhongtai, etc. Nearly 40 overseas Chinese business owners of branded auto companies attended the conference, as well as many Chinese and foreign media reporters.
The theme of this forum is “China and Argentina work together to drive the future”. Focusing on the “new trends of the 'One Belt and One Road' approach, how Chinese auto companies will enter the Arab countries” and “How Chinese automakers can achieve a win-win situation in the target market”, “Interpretation of the Arab automobile industry policy”, “Characteristics of automobile demand in the Arab countries”, “Introduction to the experience of Chinese branded automobile companies” and other topics to interact. The forum aims to build a bridge for communication and communication between Chinese auto companies and Arab countries and promote the cooperation and development of Sino-Arabic auto trade and economic cooperation.
As the largest developing country in the world, China attaches great importance to the development of the automotive industry. In particular, over the past 30 years of reform and opening up, under the guidance of the Chinese government and automobile industry policies, China's automobile industry has experienced rapid development. At present, a relatively complete automobile industry system has been formed, and production and sales volume have ranked first in the world for five consecutive years. In 2014, the output and market sales both exceeded 22 million. In terms of the total volume, it has already accounted for a quarter of global car sales and has played a role in the development of the global automotive industry. China and the Arab countries have a long-standing and sound trade base. The brand with the millennium history of the ancient Silk Road, which is also dominated by commerce and knowledge, has been included in the world's cultural heritage. Since the beginning of the new century, China has stepped up efforts to open up to the outside world and has established close trade relations with Arab countries.
Under the framework of the China-Arab National Fair, this year's China-Arab Auto Cooperation Forum has achieved gratifying results on the basis of its successful hosting last year. Wang Heshan, Vice Chairman of the People's Government of Ningxia Hui Autonomous Region and Wang Xia, Chairman of China Automotive Trade Promotion Association, addressed the meeting. The Director of the Investment Department of Jordan, the First Deputy Minister of the Ministry of Trade and Industry of Egypt, and the Deputy Director of the UAE Economics Department have provided important references for the deep development of Chinese companies in the above-mentioned countries from the policy level. At the three levels of government, industry associations, and distributors, Chinese auto companies and Arab countries attending the conference conducted in-depth discussions on investment, Arab market demand, and trends in future policies and regulations.
Wang Heshan, vice chairman of the Ningxia Autonomous Region Government, said that in recent years, China’s exports of auto products to Arab countries have grown rapidly, and Arab countries have also become one of China’s important auto export markets. In 2014, China exported nearly 250,000 cars to Arab countries, which is close to 30% of China’s total car exports. China’s automobile industry has been recognized and trusted by more and more people in Arab countries. The cooperation between China and Arab countries in the automotive field has broad prospects for development. The investment and trade in the automotive sector is in the ascendant in China-Arab economic and trade cooperation and has great potential. It is hoped that through further exchanges with participating guests, we will continue to increase the level of cooperation and assist more car forums and exhibitions to settle in China and Arab countries, and promote the cooperation between the two parties to achieve more practical results.
Wang Xia, Chairman of the China Council for the Promotion of International Trade's Automotive Industry Branch, said in an opening remark that after China’s production and sales have ranked first in the world, the Chinese auto industry is currently undergoing an important historical stage of transformation and upgrading. The transformation and upgrading will cause the Chinese automobile industry to take place. Qualitative changes, and with the great advantages brought by the “One Belt and One Road” policy, the full cooperation between China and Arab countries in the automotive sector has provided China’s autos with a great historical opportunity to go abroad and integrate into the world, adding new ones. Confidence will help Arab countries move toward auto society with less cost and faster speed so as to achieve win-win development for both parties.
Under the “One Belt and One Road” new normal, how can Chinese auto companies enter the Arab countries?
In his speech, Montaser Oklah, Director of the Investment Agency of Jordan, said: Jordan has opened its policy and has signed free trade agreements in many countries. If it invests in Jordan, the Chinese market will enter the European Union and the United States through the Jordan market. Market, no need to pay any fees. In short, Jordan will be the bridge for Chinese enterprises to enter Europe.
According to Ali Ellaithy, First Deputy Minister of Trade and Industry of Egypt, Egypt’s new laws can guarantee the interests of Chinese companies. He said: "The newly revised "Investment Law" of Egypt has been implemented in Egypt. In addition, we can also establish a free trade regional policy through a more detailed bilateral trade cooperation agreement to help China and the Arab countries in the automotive sector. ”
According to Abdulla Saleh, the UAE Minister of Economic Affairs Abdulla Saleh, China has the ability to account for 25% to 35% of the share of the Arab Republic. He said: The UAE attaches great importance to the cooperation between China and Arab countries in the automotive field, and It opened its doors to Chinese auto companies and hopes that the UAE will become a window for Chinese brand cars to face the world.
Faced with the open market environment and market demand of overseas countries, how will China's independent automakers achieve a win-win situation in the target market?
According to Wang Shunsheng, assistant general manager of Guangzhou Auto Group Passenger Vehicles Co., Ltd. and director of the International Business Department, Chinese auto companies can use the overseas joint venture and cooperation model to carry out the transfer of the entire industrial chain and the export of technology.
Nader Saad, Minister of Engineering of Egypt's Industrial Modernization Center (IMC), believes that Egypt now needs Chinese companies to invest or cooperate in Egypt and is ready to welcome Chinese brands.
Wang Shihui, general manager of the international department of Great Wall Motor Co., Ltd., believes that in order to achieve a win-win situation in the target market, the relationship between Chinese auto manufacturers and local distributors cannot be regarded as a simple trading relationship. He suggested that distributors should be part of the extension of the manufacturer's value chain. As a back-end, manufacturers must provide products, services, and training as strong support.
Xiong Chaoyin, deputy general manager of Geely Meijia International Trade Co., Ltd., believes that overseas brand distribution cannot rely solely on distributors, brand building and local marketing services are particularly important.
In the two days of the China-Arab Forum, representatives of Chinese auto companies spoke frankly and enthusiastically with representatives of Arab countries and conducted in-depth discussions on Arab countries' policies, market demand, and the direction of auto investment. In particular, it is worth mentioning that at present, some local Chinese brands have been highly praised by the Arab countries, and they have also made relevant recommendations to Chinese auto makers for certain issues.
As a result of the last forum exchange, the Jordan Akabah National Real Estate Corporation, the China Council for the Promotion of International Trade and the Ningxia Silk Road Network Technology Co., Ltd. signed a tripartite cooperation agreement to jointly promote Chinese brand cars. In particular, representatives of Chinese brand companies reached consensus on the overseas development of Chinese brand cars through full exchanges - "China Auto" "going out" Yinchuan consensus." As part of the China-Arab Fair, the China Brand Auto Show showcased the company's latest products and attracted a large number of Arab guests to stop to visit and achieve a good brand publicity.
It is believed that this meeting will create opportunities for overseas development of Chinese auto companies and further promote the development of Chinese auto companies in Arab countries.
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