Chinese Government: Our Car Exports Suck

Bertel Schmitt
by Bertel Schmitt

The auto industry and auto exports have top billing in China’s current 5 Year Plan. (Yes, for sentimental reasons, they still have one of those.) Yet when it comes to the car export part, China is still light-years away from fulfilling their master plan. The Vice Director General of the Department of Mechanic, Electronic and Hi-Tech Industry, Ministry of Commerce, made the startling admission. “China’s auto exports are still in the early stage, leaving a large gap in global exports,” Zhou Shijie told Xinhua. Translation: China’s auto exports are in the doghouse of the export powerhouse. “It is difficult for export companies to master the vehicle entry policy in foreign countries.” Translation: Our cars failed miserably in crash tests, we have trouble with pesky U.S. FMVSS and European ECE regulations, which we can barely comprehend (let alone satisfy). We’re fed up and we’re not gonna take it. No, we’re not gonna take it. Uh-oh.


Only fools with think that China will throw in the towel on car exports. Especially not while Western auto makers have trouble staying alive. Mr. Zhou didn’t say that, but it goes without saying. (Although I just said it.) The market weaknesses may be China’s grand opening. Zhou announced that “China’s Ministry of Commerce will take nine measures to support domestic auto companies to enlarge auto exports.” He didn’t elaborate what those measures may be, but it’s a fair assumption that more attention will be given to crash tests, while whole car companies crash in Western markets. And there will be eight measures more. When the auto industry upturn turns up, China’s automotive exports will be back, with a vengeance.

But wait, there’s more: At the same conference where Zhou admitted defeat, Ivan Hodac, Secretary-General of the European Automobile Manufacturers Association (ACEA), said that the European Union expects China to relax. Namely China’s insistence on 50:50 joint ventures for auto makers. They should also relax their CCC regulations, a Chinese addition to the FMVSS/ECE alphabet soup, and widely seen as Chinese water torture to drive foreign importers to tears. Xinhua quotes a faceless “industry expert” who calls Ivan’s demands “excessive.” But there might be a deal in the works.


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Bertel Schmitt Bertel Schmitt on Nov 11, 2008

    That video actually has a sub story. It's the infamous "Landwind" video. Test conducted by the ADAC, the German version of the AAA and published shortly before the first Chinese 4WD was to appear at the Frankfurt Auto Show. There were persistent rumors that interested circles in the German auto industry had paid for the test, and that the car was smashed at a higher speed than proscribed in the standard. In a later test, the car did ok, but the damage was done. A similar tragic experience was had by the Brilliance, a car made by BMWs Chinese joint venture partner. Also tested before the auto show. A re-test likewise ok. Nevertheless, a German marketing expert who was asked for an opinion on what to do with the imported Brilliances recommended: "Put them on a boat and set course towards the next hurricane."

  • JEC JEC on Nov 11, 2008

    Who says you don't get what you pay for? Well, unless you are buying a new German car.

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
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