Tapping the automobile industry

In order to expand the relevant business opportunities of the
automobile industry of Qingdao, China, Liu Wei Director-Economic Trade
Committee, Qingdao Shandong Province, formally signed a friendly business
agreement with the Taipei CarTronics Promotion Office (TCPO), represented by
Tsai Jiang Xing, Executive Chairman, TCPO. Liu, led a study group from economic
and trade representatives including the car components and spare parts
businessmen to further create more projects between cross straits. The projects
of interest include exchange in information, bilateral visits, exhibition
cooperation etc.

During the visit, Liu said, "Qingdao has a 10-year plan for
the automobile industry. One of the targets them is to prioritize and increase
production of passenger cars, trucks and trains, developing activities for the
refitted cars particularly in the spare part section." He estimated that by
2010, the annual production capacity of passenger cars could reach 5,00,000
units; 2,00,000 trucks; 20,000 trains; 50,000 special-purpose vehicles. Beside
the production capability, Liu stressed that Qingdao's automobile industry and
collective group must focus on research and develop-ment, which would lessen the
dependency on imported cars or technology, and also to form Qingdao, Shang-dong
province as an export base for automobile and spare part.

Tsai welcomed the Qingdao's study group and said the agreement
will revitalize Taiwan's elect- ronic industry and promote business
opportunity. He said, "If a Taiwanese manufacturer wants to enter the
Chinese auto-mobile market fast, the development zone of Qingdao is a pretty
good breakthrough point." Qingdao is the center of automobile industry in
China, where companies like Wu Ling Motor, China Faw Group Corp, Shanghai Sunwin
Corp, Korea Yongan Group etc setup their production facilities in the region.

A recent survey conducted by TCA, showed that relevant demand
for automobile electronics in Qingdao are mainly on drum/disc brake systems, car
air-conditioner units, sound systems, global positioning devices, backing-up
display systems, car infortainment (audio-video) systems, mobile-enabled
equipment and others such as panel instrumentation, gauges and monitoring
systems are the foremost product's list. It is a good opportunity for many
Taiwanese companies to venture and capitalize this demand in order to slice a
business deal with the Chinese counterparts to enter quickly into the China
market.