China offers to surrender its domestic auto market to win friends

[Korean]

China presses for FTA with S Korea, Japan ? Japan Today: Japan News and Discussion

China presses for FTA with S Korea, Japan
POLITICS NOV. 22, 2011

Beijing wants to open full negotiations on a free trade agreement with Japan and South Korea next year, Chinese state media said Monday, amid growing rivalry with the United States.

Monday’s report said China’s Premier Wen Jiabao had pledged to speed up work on the agreement with Tokyo and Seoul during a meeting on the sidelines of last week’s East Asia Summit on the Indonesian island of Bali.

“Wen proposed that joint studies by governments, industries and experts on the FTA from the three countries be completed by the end of this year and that formal negotiations on the trade pact begin next year,” it said.

For those Chinese nationalist posters here who deny the importance of TPP, here is a shocking news for you; the Chinese communist party is offering to surrender China's domestic auto market and many other critical industries in order to lure key US allies away from the TPP.

Korea-Japan-China FTA means the wholesale destruction of China's local auto industry currently protected by 30% tariff and strict JV rules, as it would open up China's auto market, the largest in the world, to floods of direct Japanese and Korean imports tariff-free. The CJK FTA would remove the protection that China has put around its fledgling domestic brand automakers who currently hold just 30% market share and are actually losing market shares to foreign brands right now in slowing market.

This is how much the Chinese government leadership takes the TPP seriously, enough to sacrifice China's domestic auto and consumer product industry like milk(Chinese consumers who are sick of repeated melamine scare would instantly drop Chinese brand milk product in exchange for imported Japanese and Korean brand milk product if those were imported unrestricted tariff free) to lure away key participants away from TPP.

 

[Abhishek_]

it is a good step i think. It will make chinese auto makers more competitive and improve their products. competition is healthy and should be welcomed.

 

[Nomenclature]

China presses for FTA with S Korea, Japan ? Japan Today: Japan News and Discussion



For those Chinese nationalist posters here who deny the importance of TPP, here is a shocking news for you; the Chinese communist party is offering to surrender China's domestic auto market and many other critical industries in order to lure key US allies away from the TPP.

Korea-Japan-China FTA means the wholesale destruction of China's local auto industry currently protected by 30% tariff and strict JV rules, as it would open up China's auto market, the largest in the world, to floods of direct Japanese and Korean imports tariff-free. The CJK FTA would remove the protection that China has put around its fledgling domestic brand automakers who currently hold just 30% market share and are actually losing market shares to foreign brands right now in slowing market.

This is how much the Chinese government leadership takes the TPP seriously, enough to sacrifice China's domestic auto and consumer product industry like milk(Chinese consumers who are sick of repeated melamine scare would instantly drop Chinese brand milk product in exchange for imported Japanese and Korean brand milk product if those were imported unrestricted tariff free) to lure away key participants away from TPP.

You seem to be incapable of understanding the difference between a negotiated free trade agreement and TPP, which is offered to China on a take-it or leave-it basis.

 

[FairAndUnbiased]

China presses for FTA with S Korea, Japan ? Japan Today: Japan News and Discussion



For those Chinese nationalist posters here who deny the importance of TPP, here is a shocking news for you; the Chinese communist party is offering to surrender China's domestic auto market and many other critical industries in order to lure key US allies away from the TPP.

Korea-Japan-China FTA means the wholesale destruction of China's local auto industry currently protected by 30% tariff and strict JV rules, as it would open up China's auto market, the largest in the world, to floods of direct Japanese and Korean imports tariff-free. The CJK FTA would remove the protection that China has put around its fledgling domestic brand automakers who currently hold just 30% market share and are actually losing market shares to foreign brands right now in slowing market.

This is how much the Chinese government leadership takes the TPP seriously, enough to sacrifice China's domestic auto and consumer product industry like milk(Chinese consumers who are sick of repeated melamine scare would instantly drop Chinese brand milk product in exchange for imported Japanese and Korean brand milk product if those were imported unrestricted tariff free) to lure away key participants away from TPP.

lmao I can't see any of this in the news link you've given. I also don't get how the automotive industry is "crucial". I'd imagine aerospace, telecom and finance to be more "crucial". The US doesn't use GM to occupy and enslave you after all, it uses toxic beef and military occupation.

 

[Korean]

it is a good step i think. It will make chinese auto makers more competitive and improve their products.

No, they will be wiped out because they are losing market shares(Down to 27%) even with 30% tariff and 50:50 JV rules that asks foreign automakers to "share" technology. As Chinese personal income rises, the first victims are Chinese domestic brand automakers because Chinese consumers can now afford foreign brand models and ditch Chinese brand models.

Now imagine Chinese domestic auto market open to Japanese and Korean imports tariff free. Heck, VW would be moving its factories to Japan or Korea in order not to deal with China's JV rules and ship finished product to China tariff-free.

 

[Abhishek_]

^no need to make such predictions. let time be the judge.

either way, chinese customers stand to benefit. good for them

 

[Fantasy]

Korean, one advise to you, don't sensationalize everything, you end up making a fool of yourself. Your opinions are so far from logic, it makes you look delusional or trolling.

 

[Korean]

TPP, which is offered to China on a take-it or leave-it basis.

TPP is not offered to China, and China cannot enter because entering requires approvals from Vietnam, Australia, Singapore, the US, etc.

 

[Determined Tiger]

that dude posted this thread is not a korean, it is just a lame troll trying to hide behind that flag to spread dismiss propaganda, I can smell some curry powder from that bashing @$$!!!

 

[Nomenclature]

No, they will be wiped out because they are losing market shares(Down to 27%) even with 30% tariff and 50:50 JV rules that asks foreign automakers to "share" technology. As Chinese personal income rises, the first victims are Chinese domestic brand automakers because Chinese consumers can now afford foreign brand models and ditch Chinese brand models.

Now imagine Chinese domestic auto market open to Japanese and Korean imports tariff free. Heck, VW would be moving its factories to Japan or Korea in order not to deal with China's JV rules and ship finished product to China tariff-free.

This is certainly a most amusing prediction. Now the China-ASEAN free trade agreement has already came into effect for nearly two years, so pray tell, is VW winding down its operations in China and moving to ASEAN?

 

[Korean]

This is certainly a most amusing prediction. Now the China-ASEAN free trade agreement has already came into effect for nearly two years, so pray tell, is VW winding down its operations in China and moving to ASEAN?

To qualify for tariff-free benefits in a typical FTA agreement, the car has to have at least 50% of local content, which is hard to achieve in ASEAN due to the lack of local auto parts industry.

This is not the case with Japan and Korea, which already have world-class local parts industries and local cars have 95~99% local content.

 

[Nomenclature]

To qualify for tariff-free benefits in a typical FTA agreement, the car has to have at least 50% of local content, which is hard to achieve in ASEAN due to the lack of local auto parts industry.

This is not the case with Japan and Korea, which already have world-class local parts industries and local cars have 95~99% local content.

Not true. Thailand, for example, has a booming auto parts sector, which is evident in the major impact of Thai flooding on the Japanese auto industry.

 

[applesauce]

To qualify for tariff-free benefits in a typical FTA agreement, the car has to have at least 50% of local content, which is hard to achieve in ASEAN due to the lack of local auto parts industry.

This is not the case with Japan and Korea, which already have world-class local parts industries and local cars have 95~99% local content.

japanese and korean car market are protected by their government, it's one of the sticking points when the US was negotiating for the FTA with SK

 

[FairAndUnbiased]

japanese and korean car market are protected by their government, it's one of the sticking points when the US was negotiating for the FTA with SK

its ok, let them fight each other for who has the slightly shinier car.

whle we're making telecom hardware, supercomputers, stealth jets, aircraft carriers, nuclear missiles, life saving cancer drugs and satellites, they're still talking about who can make a phone slightly slimmer or car slightly shinier.

 

[Oy.vey]

The Japan, Korea, China free trade has been planned for years.
The TPP however is just another scam by the Americans to impose American regulations onto smaller countries. Kim, you should understand why so many Japanese and Korean farmers are protesting... you should look at what the TPP entails, they want to enforce their copyright laws on your country. Free trade with the Americans at this point simply means more subjugation.