【正文】 ows:(1)Lowering of tariffs: Import tariffs on passenger cars will gradually be lowered to 25% by July 1, 2006. The tariffs on buses will also be reduced to 25% by 2005. Those on trucks will be lowered to 15, 20, 25% between 2004 and 2005 (the ratio is different by GVW and the type of fuel).(2)Quantitative restriction on imports: It will be pletely abolished in 2006, until such a time when the import quota will gradually be expanded.(3)Compliance with TRIM agreement (Agreement on TradeRelated Investment Measures): Balance of foreign currency, balance of import and export, demand for nationalization, and demand for export will be eliminated from requirements of approval for investment plans from abroad.(4)Liberalization in the field of distribution: Restrictions on entry by foreign capital into wholesale/retail sale of automobiles will pletely be abolished in three years.(5)Entry into auto financing by nonbank financial institutions: Restrictions will be eliminated at the same time as the entry into the WTO.■A new restriction on the import of autoparts is introduced, requesting automakers to spin off their autoparts divisions like the example of Honda39。D facility with an investment of more than 500 million RMB.Companies that enter into production of passenger cars and heavyduty trucks are required to manufacture their engines as well.Establishment of a new automotive engine makerTotal investment of more than billion RMB. (selffinancing of more than 500 million RMB).Holds an Ramp。Conditions for the establishment of a new automaker are tightened. Clearly indicated conditions include the attachment of Ramp。 therefore, business activities of those panies are virtually terminated. Moreover, under the new auto policy, requirements for approval for production by panies include requirements for capability for design and development, production facility, stability of production and quality control capability, capability for sales and aftersales service.After 2000, when vehicle production in China surpassed 2 million, the number of panies that had entered into the field of vehicle production by taking over slumping automakers and other means increased rapidly。 Sales ■To streamline the structure of the industry by promoting selection and reorganization and by tightening conditions on the establishment of new automakersMajor foreign partner paniesOutputRatioChina FAW Group Corp.Toyota, Daihatsu, VW, Audi, Mazda858,737%Shanghai Automotive Industry (Group) Corp.VW, GM, Volvo, Ssangyong Motor796,969%Dongfeng Motor Group CorpNissan, Nissan Diesel, Honda,PSA, Yulon Motor, Kia473,012%Changan Automobile (Group) Liability Co., Ltd.Suzuki, Ford, Mazda, Isuzu406,861%Beijing Automotive Industry Holding Co., Ltd.DaimlerChrysler, Hyundai Motor,Mitsubishi Motors, Isuzu347,947%Harbin Hafei Motor Co., Ltd.Mitsubishi Motors200,007%Jinbei Automobile Co., Ltd.Toyota124,438%Guangzhou Automotive Industry Group Corp.Honda, Toyota, Isuzu122,568%Changhe Aircraft Industries (Group) Co., Ltd.Suzuki118,721%Nanjing Yuejin Motor Group Corp.Fiat, Iveco99,469%Others production facility in Shandong Province and (2) plan to bring Jinbei GM Automobile under the umbrella of Shanghai GM. A wide variety of similar potentials have opened for other panies that have expanded into China.Note: As a measure to expand the range of independent management, a notification system was introduced into a portion of investment that was required to win approval. For instance, in the case of production of a new model which is required to receive authorization from multiple government agencies, panies, if they meet the requirements, are able to obtain approval through notification and the government39。 currently two groups, China FAW Group Corp. (FAW Group) and Shanghai Automotive Industry (Group) Corp. (SAIC Group) have a marketshare of 15%. The new auto policy supports automakers developing into largescale automobile corporate groups in the form of resource restructuring or encourages an automaker to form an alliance by plementing each pany39。 Reform Commission designs. Largescale automobile groups themselves formulate their own development plans based on the medium and longterm plan and carry out the plan independently as it wins approval from National Development amp。s Automobile Industry Development Policy * To make the automotive industry into a core industry of the Chinese economy.* To foster a sound consumer market by promoting cooperative development of related industry and transportation infrastructure, and environmental protection.* To join among major auto producing countries worldwide, and to almost satisfy domestic demand and to export products in large amounts overseas.* To improve capability for Ramp。s Output of Automobiles(10,000 units)Note:The target figure for 2005 is million under the Tenth FiveYear Plan (20012005) for the Automotive Industry in China (which was piled in 2001). Output went beyond million to a total of million in 2002. Output amounted to million in 2003. Output totaled million in 1994, when Industrial Policy for the Automobile Industry was formulated as China39。s automobile policy, the following objective has been set: The fostering of China39。China39。In line with the announcement of the new auto policy and Auto China 2004 (the 8th Beijing Motor Show), which opened on June 9th, the announcement of Chinese business plans was successively made by automakers worldwide. The scale of Chinese business by major global automakers, including plans already revealed by each automaker, will amount to more than million a year in several years.→the New Auto Industry Development Policy Of China■China, focusing on the balance of development, aims to take a place among major auto producing countries by 2010In June 1, 2004, the Chinese government off