Will Russia-China Automobile Forum break the deadlock of Sino-Russia Auto Trade?

On Sep. 15 a decree by Russia Economic Development and Trade Commission slammed the door for Chinese auto manufacturers to enter Russia market. And on Sep.25 Russia Senior Counselor Mr. Alexey N.Evsikov replied to three Chinese media saying that the reason why Chinese Auto manufacturers were refused by Russia government was that Chinese Auto manufacturers couldn’t bring new technology to Russia auto industry. He said that most Russians do not know or don’t want to buy Chinese automobiles. He said that once developed country’s auto giants are producing low price automobiles in Russia, the situation of Chinese manufacturers are in danger.

　　The whole process of the seesaw struggle is thought-provoking. It pushes people to search for the root of this disputation.

　　Chinese manufacturers should learn from this failure that though Russian auto market is luring, the road to find the cake is bumpy and full of danger. In order to perform well on a foreign stage, you have to know their policies, market condition and habit well. The road to a foreign market is not only sales of automobiles but also a road of after-sale service building. Many Russian customers worry that once they have bought Chinese automobiles, after-sale services and spare parts will trouble them.

　　Until 2005 there were no exports of Chinese cars to Russia at all. This year, 120,000 vehicles are expected to arrive. Though the market share of Chinese automobiles in Russia is still small, but the big successes Chinese brands automobiles began to make have worried Russia local manufacturers. Russia media began to report the negative side of Chinese automobiles. A video of China's best-selling car in Russia, the $9,000 Chery Amulet, collapsing as if made from cardboard is widely seen in Russia. We do not know whether the test is true or not. But, many people believe that the decree stems from the worries of Russian local manufacturer and the government to the big success of Chinese automobiles.

 　　In the late of Oct. the Russia-China Automobile Forum will be held in Beijing which is a forum with participation of governments. The forum will be a bridge for communications between Chinese manufacturers and Russia. Many people hope that the forum will break the deadlock of Sino-Russia auto trade. However, once there are severe competition between Chinese auto manufacturers and Russia local manufacturers, the seesaw struggle and business frictions will continue.

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