China removes foreign vehicles from official purchasing list

None of this namby-pamby, free-trade, open government procurement processes nonsense from the Chinese!

The Detriot News reports that shares in Chinese car manufactureres rose, after the government excluded foreign brands from the list of approved models for official vehicle purchases.

All 412 models approved for purchase by state agencies this year will be limited to Chinese brands, according to the Ministry of Industry and Information Technology. The move will help local brands gain in the government fleet's 80 billion yuan ($12.7 billion) market at the expense of foreign carmakers such as Volkswagen AG, General Motors Co. and Toyota Motor Corp., China International Capital Corp. said in a report today.

Why don't the Chinese like the Austin Allegro?

Estimates are that the state operates a fleet of at least 5.2 million vehicles, so we're talking about pretty substantial numbers and money here.

I'm a fully committed supporter of free and global trade. But when you see things like this, you do wonder whether certain countries play by different rules. Perhaps we should announce that all uniforms and textiles bought by European state bodies will be sourced locally (rather than from China)?

 

Voices (4)

  1. dan2:

    In other news, Siemens warn UK Gov to ensure there is a fair/open competition for Crossrail: http://www.guardian.co.uk/uk/2012/feb/26/crossrail-siemens-contract-warning

    Will be interesting to see if Francis M responds given his past statements on this subject?

  2. Rob:

    When 70% of their $12 billion/5.2m vehicles requirement currently goes to foreign manufacturers, you can imagine how this might come across to one of the world’s most successful manufacturing countries. They are probably subsidising the car industry of some other countries.

    Luckily, we will largely be unaffected by this decision because a succession of UK governments has ensured that our car industry is now negligible.

  3. Plan Bee:

    See my earlier comments about free trade. Free Trade is fine when it truly is free, but if your markets are putting barriers up to your manufacturers, in the end, you need to do the same. Otherwise you might not have any manufacturing left

    Of course in the UK that would be shutting the door after the horse has bolted

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