Distinguished Mr. Shao Qihui, Respected leaders, Ladies and Gentlemen,
2007 China Guangzhou Automobile Development Forum is held here today. This is another grand occasion for government representatives, industrial experts and entrepreneurs to discuss and communicate with each other about the development of Chinese automobile industry. Mr. Zhang Guangning, mayor of Guangzhou was supposed to be here today, but he has some urgent issue to deal with in another province. Therefore, he asked me to convey his apology to you all. Here I would like to express my sincere congratulation to the opening of this forum on behalf of Guangzhou municipal government as well as Mr. Zhang, and also I would like to give my warm welcome to all the experts and friends who are participating in this forum.
As we all know, in 2001 China was the seventh largest automobile manufacturing country in the world. After continuous development in recent years, China now has become the second largest automobile manufacturing country in the world. And we have the third largest automobile market in the world. China is also universally recognized as the country that has the biggest potential of development in automobile industry. Under such circumstances, how to review our own automobile industry with a global view and thus make strategic decisions and seek opportunities to realize the great leap of our automobile industry becomes an important issue today. This forum, with the theme of “scientific development toward integration into the world,” discusses in depth the path of development of Chinese automobile industry in the trend of accelerated globalization. This will definitely have positive influence on Chinese automobile industry's future development and provide clear guideline for the development of Guangzhou automobile industry.
The development of automobile industry in Guangzhou epitomizes that of automobile industry of the whole nation in the new era. Looking back into the history, analyzing the current situation and viewing the future of the development of Guangzhou automobile industry, we believe opening up to the world, facing the world and integrating into the world is the key and guarantee for the success of the continuous, rapid and healthy development of Guangzhou automobile industry.
First, facing the world and integrating into the world is the ultimate trend of the development China's automobile industry. In the present world, the trend of economic globalization has profound influence on countries and areas of different levels of development. In recent years, the world science and technology is developing fast, the reorganization of world industries and the flow of production elements is also accelerating. International industry of automobile has better ability of research and development and the technological level and operation concept has also improved. There are changes every day and the transfer of industries is also accelerating. Therefore, for Guangzhou's automobile development, which is still at the opening stage, and for China's automobile industry as a whole, under the circumstances that the technical level, management ability, governance foundation and hardware facilities need to be improved, it is impossible for us to separate from the rest of the world. We should be objective and recognize the fact that many key technology and facilities for most joint venture or cooperated automobile enterprises in China need to be introduced from other countries. And it takes a long time to improve such kind of situation. The automobile industry of our country should seek to outrun home appliance industry, but it inevitably has to follow the similar path as the development of home electro-appliance industry. We should be more active to face and integrate into the world, learn and utilize the advanced concept, experience, technology and facilities of the world automobile industry. Otherwise it would postpone the shortening of distance between China's automobile industry and that of the world. In the mean time, economic globalization has provided good conditions for us to enlarge international market. It also helps promote the export of China's automobiles in recent years. The automobile industry of China no longer depends purely on internal market. This means we should insist on integrating into the world and facing the world, which is a rational choice for the development of China's automobile industry.
Second, Guangzhou automobile industry has made great development through facing the world and integrating into the world. The cooperation and joint venture of saloon car industry of Guangzhou and international automobile enterprises started from the import of technology and manufacturing and assembling in the 1980s. In 1998, Guangzhou Automobile Group and Honda Automobile established Guangzhou Honda Company. This company grew up in hard situation and thus brought vital force to the development of Guangzhou's automobile industry. By introducing new technology, using them and improving, in a quite short period, Guangzhou Honda has become one of the most successful joint venture automobile companies in China. After Honda, Guangzhou established Dongfeng Nissan and Guangzhou Toyota Company. Many foreign parts manufacturers and traders were attracted to Guangzhou and established joint ventures with internal enterprises. After the development during the tenth five-year-development period, Guangzhou has become one of the three automobile manufacturing bases in China. The capability of manufacturing rose from 50,000 automobiles in 2000 to 555,200 in 2006. In 2006, the total volume of Guangzhou automobile manufacturing industry reached 116.2 billion, with an increase of 29.56% than last year. A total of 549,100 automobiles were produced, which made Guangzhou the second among the manufacturing areas in the whole country. 55,300 automobiles were exported, making Guangzhou among the top in China. At present, spare-part and relative logistics enterprises in Guangzhou and surrounding areas have established a unique automobile industry cluster together with Guangzhou Honda, Guangzhou Toyota and Dongfeng Nissan, which helped explore a sustainable, fast and healthy growth path of regional automobile industry. It is on this solid foundation that Guangzhou handsomely outlined a bright blue print of the development of automobile industry during the eleventh five-year-development period. Facing the world, integrating into the world is the major motivation for the development of Guangzhou automobile industry.
Third, to maintain the rapid and healthy development of Guangzhou automobile industry requires us to further integrate into the world. The future national and international automobile industry will face larger scale expansion as well as more sever competition. To maintain the fast and sound development of Guangzhou automobile industry, we must still stick to the principle of integration into the world and follow the path of internationalized development, and we must integrate further into the world. Firstly, we should improve the scale and depth of cooperation with foreign enterprises in China. We should, with the good foundation of whole car cooperation, continue to enlarge the scale of cooperation and raise the level of cooperation. We should expand the cooperation to different fields, such as business cars, spare parts, automobile financing, service and trade. Secondly, we should fully utilize international resources and establish our own brand, and conduct independent research and develop. This is our goal for the development of automobile industry. In the middle of this month, we have laid the foundation of Research and Develop Base of Guangzhou Automobile Group. We will make great effort to carry out our own brand of automobile in 2010. We also know that research and development couldn't be conducted without communication with the outside world. From the establishment of Research and Development Center of Dongfeng Passenger Car in 2004, to the establishment of Guangzhou Honda Automobile Research and Development Company Ltd. in 2007, then to the opening of Research and Develop Base of Guangzhou Automobile Group, our research and development is following a path that is open, gradual and independent. In the future, we will cooperate better with the rest of the world through joint development, achievement share, ODM, employment of migrant labors, talent education and self-dependent research and development. Through those various ways of research and development, we will fully utilize world resources with a stance of opening up to the world, and accelerate independent research and development and establish out own brand. Thirdly, we will target at the international market and make great effort to seek more space for development. In September this year, Guangzhou was entitled “National Base of Automobile and Spare-part Exportation.” This built up a larger platform for the automobile industry of Guangzhou to go to the world. We will fully utilize two types of resources and two types of market to further expand the development space for Guangzhou automobile industry and thus realize its sustainable, rapid and healthy development. In conclusion, facing the world and integrating into the world is the guarantee of the further development of Guangzhou automobile industry.
Ladies and Gentlemen, we are in a golden period for the development our automobile industry and we will also have a bright future in this respect. Guangzhou would like to work together with other cities in the country and to contribute to the development of China's automobile industry. Last but not least, I wish a great success to 2007 Guangzhou Automobile Development Forum.
Thank you very much!
(Full text of the remarks by Chen Mingde, Vice Mayor of Guangzhou at "2007 China Automotive Industry Development Forum" on November 20, as transcribed)