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. Strengthen our capacity for independent research and development, 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, emphasizes that the "11th Five-Year Plan" highlights the automotive industry as a key component of the city's industrial strategy. He points out that the plan not only focuses on consolidating existing advantages but also places strong emphasis on building up independent R&D capabilities. The vision of accelerating the digestion of foreign technology and establishing a world-class automotive R&D center is considered highly forward-thinking. He further explains that the automobile industry has a significant economic multiplier effect, often referred to as a 1:10 ratio. This means that a 1% increase in the output of the auto sector can drive a 10% growth in the overall economy. The reason behind this is that the automotive industry stimulates multiple related sectors, such as steel, metallurgy, rubber, petrochemicals, plastics, glass, machinery, and electronics. It also extends into services like maintenance, commerce, insurance, transportation, and infrastructure development. Additionally, it fosters the adoption of new technologies, materials, processes, and equipment. Government Perspective: Li Zhibao, former director of the City Economic Commission, outlined ambitious goals for the auto industry during the "11th Five-Year Plan." By 2010, the city aimed to reach a total vehicle production capacity of 1.4 million units and achieve an output value of 300 billion yuan for the auto industry. To realize these targets, the city planned to focus on supporting FAW’s development, leveraging its leadership role, and promoting the growth of four key areas: the Automobile Industry Development Zone, Changchun International Automobile City, FAW Group, FAW-Volkswagen, and the automotive parts and special vehicles sectors. Li also emphasized the importance of differentiated development, focusing on environmentally friendly cars, urban utility vehicles, and various types of passenger cars. The plan included the development of agricultural machinery, tractors, and other specialized vehicles, aiming to diversify the city's vehicle product system. In addition, the city aimed to expand its R&D capabilities, design next-generation automotive components, and improve the overall design process—from concept to engineering data release—to better align with market demands. Moreover, the city intended to strengthen its position as a national auto and auto parts export base by improving infrastructure, setting up a comprehensive export service system, and using this opportunity to open up international markets and boost exports. Political Representation: Xu Xiuqiang, a deputy of the Municipal People's Congress, stressed that the government should support the automotive industry from multiple angles. He argued that the industry involves a full supply chain, including manufacturing, marketing, maintenance, financial services, environmental protection, energy, and transportation. Current policies, he noted, are too narrow, focusing only on manufacturing. In reality, broader support from different perspectives—such as policy, finance, and infrastructure—is essential to fully unlock the potential of the industry. Xu also suggested that the city should explore the Russian market more actively, strengthening ties with Russian cities like Tula and Cherepovets. By organizing exhibitions, technical forums, and establishing platforms for business exchanges, the city could enhance cooperation between local companies and Russian enterprises, encouraging further expansion of export activities.

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