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China's automakers told to develop abroad

0 CommentsPrint E-mail Xinhua, July 20, 2010
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China's automakers must expand research and development initiatives abroad in order to overcome limitations to their innovative and competitive abilities at home, an industry expert said Tuesday at a major auto show in northeast China.

The three major advantages of conducting R&D abroad were access to advanced technologies, cost and time efficiencies, and the ability to attract a wider range of professional expertise, said Hu Kaibin, a research fellow from the Economic Management Research Institute of Beijing Automotive Industry Holding Co. Ltd..

Hu said poor research capabilities meant Chinese auto enterprises were struggling to meet consumer demand and market requirements.

"It is essential to conduct research and development abroad. Auto giants such as Toyota, GM and Ford all have their own their research and development centers in Europe," Hu said at the China (Changchun) International Auto Show in Changchun, Jilin Province.

In the first half, China's auto exports hit 242,800 vehicles, up 70.53 percent from the same period last year.

However, industry experts say domestic auto enterprises still face problems, including a lack of technological competitiveness, brand reputation and international marketing networks.

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