|
Economic Review: Resource conservation in China means new business opportunities
2005-08-31
Xinhua
Oil-saving automobiles are getting increasingly popular in China. Among 3,600 sedan cars sold during a past ten-day automobile expo, two thirds were economical cars with low discharge volumes.
"Less powered cars mean less gasoline consumption and lower prices," a participant told Xinhua at the nation-wide auto expo held in Changchun, capital of northeast Jilin province. He wanted to purchase a car with discharge volume below 1.6 liters.
China's plan to build a resources-saving society, which first appeared in a circular issued by the State Council, the country's cabinet, is actually restructuring Chinese consumer behavior,and changing the production mode.
Some companies have been acute enough to realize the emerging business opportunities hidden in China's resource-saving ambitions.
Vice Proprietor Yosimi Inaba from Toyota said while attending the Changchun auto expo that vehicles powered by mixed fuels were expected to sell well in the Chinese market due to their environmental protection characteristics.
He also mentioned that Japan's technology for vehicle recycling would have a good prospect of application in China, as discarded automobiles would be a future problem for China.
Wang Xiaoguang, an expert with the economic research institute of the National Development and Reform Commission, said the new energy-saving strategy would lead to adjustment in industrial policies, and even the whole economic system in the country.
Therefore, it would help to cultivate Chinese people's consumption preferences in line with the real situation concerning the country's energy, environment, and economic power, while, on the contrary, the changes in the consumption preferences would influence the production as well, Wang said.
To take the auto industry as an example, the consumption of automobiles is undergoing structural changes due to skyrocketing oil prices and poor traffic conditions in cities.
Cars with low discharge volumes became the main eye-catchers during the Changchun auto expo, whereas luxurious and conceptual foreign-brand cars had attracted most people at previous expos.
In the expo, the most frequently cars requested for trial rides were domestic-brands priced at 40,000-60,000 yuan (4,938-7,407 US dollars) and fuel-saving cars newly introduced by Honda, Nissan, and Buick between 90,000-120,000 yuan (11,111-14,815 dollars).
Statistics show that the formerly advantageous European auto manufacturers like Volkswagen reported a sharp decline of market share in China, as they lag behind in recognizing the rising potential of economical sedans.
On the other hand, Japanese and Korean manufacturers made a quick response to the changing preferences of Chinese auto consumers, and gained a higher market share of 33 percent this year, up 13 percent over that of 2001.
But, "Emerging opportunities in other sectors should not be overlooked," Wang said.
He foresaw that real estate developers would build higher buildings to save rare land resources. Therefore, more steel, especially high-quality steel to support higher buildings, would be demanded. Those high-end steel companies at home and abroad are offered new opportunities in the Chinese market.
"Resource conservation, aimed to upgrade efficiency with the least resources, does not mean no development," Wang said.
|
