Changchun will build the country's largest vehicle and parts production base

"Consolidate the strengths of the automotive industry, support FAW Group in enhancing its independent innovation capabilities, expanding its scale, and improving its product system. The city will focus on strengthening its own development and design capabilities, accelerate the absorption and integration of imported technologies, and establish an international automotive R&D center." - Excerpted from the "11th Five-Year Plan Outline for the National Economy and Social Development of Changchun City" Expert Commentary: Wang Wenbo, an associate professor at the Municipal Party School, emphasized that the "11th Five-Year Plan" highlights the automotive industry as a core part of the city’s industrial strategy. He pointed out that the plan not only focuses on reinforcing existing advantages but also sets a forward-looking vision by promoting independent R&D, enhancing design capabilities, and building a world-class automotive R&D center. He further explained that the automotive industry has a significant economic multiplier effect—often referred to as a 1:10 ratio. This means that every 1% increase in the auto sector's output can lead to a 10% rise in overall economic output. The industry drives numerous related sectors such as steel, metallurgy, rubber, petrochemicals, plastics, glass, machinery, and electronics, while also extending into services like maintenance, commerce, insurance, and transportation. It also serves as a hub for adopting new technologies, materials, processes, and equipment. Government Perspective: Li Zhibao, then director of the City Economic Commission, outlined ambitious goals for the automotive industry during the "11th Five-Year Plan" period. By 2010, the city aimed to reach a total vehicle production capacity of 1.4 million units and generate an output value of 300 billion yuan in the auto industry. To achieve these targets, the city planned to leverage key areas such as the Changchun Automotive Industry Development Zone and the national auto parts export base. Li emphasized supporting FAW Group to play a leading role, while nurturing four growth poles: the automotive industry development zone, Changchun International Automobile City, FAW Group itself, FAW-Volkswagen, and the automotive parts integration and differentiated vehicle production sectors. In terms of specific strategies, the city aimed to implement differentiated development, focusing on environmentally friendly vehicles, urban utility cars, and various types of passenger cars. It also planned to develop agricultural machinery, improve special vehicle varieties, and enhance the overall product system. Additionally, it sought to expand R&D capabilities, provide comprehensive engineering design services, and ensure a smooth transition from concept to market-ready production. The city also aimed to build a solid foundation for the national auto and auto parts export base, establishing a complete infrastructure and service system to support international market expansion and increased exports. Political Representation: Xu Xiuqiang, a member of the Municipal People's Congress, stressed that the government should support the automotive industry from multiple perspectives. He noted that the industry involves a full supply chain, including manufacturing, marketing, maintenance, financial services, environmental protection, energy, and transportation. Xu argued that current policies are too narrow, focusing only on manufacturing. He called for broader support policies to address challenges such as supply chain limitations. He also suggested that the city should actively explore the Russian market, strengthen ties with Russian cities like Tula and Cherepovets, and organize exhibitions and technical forums to foster business exchanges and promote exports.

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