【正文】 “borrow” everything from design to even logos from foreign panies. These standoffs, which sometimes go to court, have even emerged between JV partners, illustrating that such cooperation is not always the “winwin situation” envisioned by eager foreign firms.A key reason for many IPR issues is the overlap between a small number of Chinese firms with the world’s largest car producers. The top three domestic car manufacturers, SAIC, FAW and Dongfeng Motor, have snagged most deals with foreign auto panies. SAIC has JVs with VW, and GM, FAW has ventures with VW, Mazda and Toyota and Dongfeng has teamed up with Nissan and Renault.The JV relationships can be difficult in other ways. It is rumored SAIC chose to partner with GM when VW refused to turn over certain technologies to the Chinese firm. Of course, the relatively lax (some say protectionist) attitude displayed by Chinese courts toward such matters has not helped to change the IPR climate in China. Car imports are generally limited to highend luxury vehicles, primarily due to priceinflating tariffs. But current tariffs are not as steep as in years past, due to new WTO regulations. In 2005, they ranged from 3843%, depending on the origin of the car, and in 2006 the tariff is expected to drop to a flat rate of 25%. Previously the rate was as high as 130%. As a result, car imports are growing steadily, reaching over 100,000 units in the first half of 2005, with a value of over US$ 3billion.China’s auto exports have grown rapidly in percentage terms recently, primarily because they were starting from a low base. But still, indications point toward China being a top automobile exporter in the ing years, particularly as the potential for oversupply bees ever more likely in the domestic market. Volkswagen for example, has announced that it plans to export its Chinamade vehicle to 84 countries by manufacturers will certainly follow suit.A potential bubble looms on the horizon. Analysts estimate nationwide automobile production capacity to be around million vehicles per year with a likely expansion to more than ten million vehicles in the ing years, far exceeding market demand. If such a scenario plays out, the result will be Chinabased automobile manufacturers pursuing an aggressive export strategy.Aside form the obvious economic impact of the automotive industry, the popularization of the automobile is also being felt in Chinese society. Much to the chagrin of Chinese urban planners who had envisioned massive public transportation networks as the principal means of transport for China’s bustling urban metropolises, it seems Chinese people have instead fallen in love with car culture. The number of cars in Shanghai reached the 2020 estimate by the beginning of 2005, and new highways are being saturated with traffic as quickly as they are built. In Beijing, simply getting across town during rush hour has the potential to be a severalhour ordeal. For better or worse, car ownership is fast being synonymous with success in China and the automobile is here to stay.(Global Auto Sources .February 15,2007)Chery Automobiles: China39。s Auto War BeginsChina is laying plans at this very moment to begin shipment of passenger vehicles to the North American market by mid 2007. Chinese automobile manufacturer, Chery, yes read that again... the pany sounds strangely like Chevy, is looking at bringing not just one, but a whole fleet of low cost production vehicles to our shores. Proposed prices will astound you and could potentially bring the . auto market to its knees. Don’t think for even one moment that Japanese and Korean automakers will be immune from this flood of low cost cars. Chery vehicles have been designed – some say stolen – from current Asian models and will pete directly against the likes of Toyota, Honda, Nissan, and Hyundai. China’s long awaited war with the US – at one time expected to begin with a Red Army attack on Taiwan may be fought on an economic front instead.Chery, a stateowned car producer formed in China’s eastern Anhui Province, is currently building a number of cars in China including the – a pact car strangely similar to the Daewoo Spark [GM’ Korean division], as well as several sedans and a pact SUV. Indeed, recent charges made by Toyota, GM, and Honda have all alleged that Chery mimicked or outright stole designs from at least one of each automaker’s vehicles including the Honda CRV. For the record, the Toyota case was rejected, Honda is still attempting to work out a solution with their case, and GM recently dropped its suit after the Chinese automaker agreed not to sell their cars in the US under the Chery name which GM has stated is too close to the Chevy name. Chinese courts have also ruled that the Daewoo Spark design was not registered in China, so GM dropped its suit.At present, the Chery vehicle line up includes the tiny 。 a pact SUV built jointly with Mitsubishi called the Tiggo。 and three sedans: the Oriental Son, the Flagcloud, and the Windcloud. Recently, Chery unveiled a newly designed crossover vehicle along the lines of the Chrysler Pacifica. With an introductory MSRP of under $20,000 the Chery crossover will seat up to seven passengers and e equipped with both four and six cylinder engines. As you might guess the Chery crossover, if equipped similarly to the Pacifica, could be priced some ten thousand dollars less than the Chrysler model.Current prices on the other models have not yet been set, but published reports this past summer indicated that a basic Chery could retail for as low as $6995 in the US, which would be some three thousand dollars less than the next lowest priced car, the Chevy Aveo [from GM’s Daewoo unit, naturally]. Of course, this particular pricing strategy has raised all sorts of alarms within the automobile industry, chiefly how to counter a flood of low cost cars invading the . market. As some have pointed out, much like Hyundai’s introduction to the North America market during the 1980s, the Chinese cars are expected to initially have only a limited appeal pr