BUSINESS China continues on path to unified domestic auto market

BUSINESS

China continues on path to unified domestic auto market

China Daily

11:56, May 27, 2022

A new energy vehicle rolls off the production line of a carmaker in Jinhua, Zhejiang province. HU XIAOFEI/FOR CHINA DAILY

The auto industry expects China's efforts to build a unified domestic market to further strengthen its production line and satisfy customers' demand, China Youth Daily reported on Thursday.

In April, China released a guideline on accelerating the establishment of a unified domestic market that is highly efficient, rules-based, fair for competition and open.

The guideline underscored promoting the interconnectivity of market facilities, including building a modernized circulation network, improving the exchanging channels of market information and upgrading transaction platforms.

This means the synergy among industries and between the upstream and downstream of an industrial chain will both be greatly strengthened, industrial experts stated, adding the key now is to unblock circulation based on domestic demand and gradually lift all unreasonable restrictions.

The guideline also stressed the establishment of unified market regulatory rules and breaking down on local protection and market segmentation.

Some local governments used high subsidies and credit support or direct investment to promote the development of new energy vehicles, thus forming an industrial advantage, Pan Helin, co-director of the Digital Economy and Financial Innovation Research Center at Zhejiang University's International Business School, said to China Youth Daily.

Accelerating to build a unified domestic market means this phenomenon should be eliminated in the future and all cities should attract new energy vehicle companies on a more equal level, Pan said, adding local governments should reduce competition in financial subsidies and provide services for enterprises on an equal footing.

Without financial subsidies for new energy vehicles, the industry will speed up their return to the unified domestic market, industrial analyst Yang Xiaolin told China Youth Daily, warning it should still be vigilant against non-market barriers and let consumers have more choices.

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