(China Daily)
Updated: 2008-03-19 15:29

The government should support innovation in the domestic car industry, says an article in People's Daily. The following is an excerpt:

At this year's session of the NPC, Zuo Yanan, a deputy and the chairman of an automobile company suggested that the government should give priority to domestic cars in their purchase. He said the government should decide on the proportion of domestic cars over foreign cars bought for government departments, especially those with independent brands and technology.

In the eyes of some people, it is not proper for the government to adopt a preferential policy on the purchase of locally-made cars. If the government directly supports domestic cars, it could be viewed as protection and not conducive to the advancement of globalization.

Others believe that many overseas cars are now localized and can be considered domestic cars. So it is not necessary for the government to distinguish among them.

The car industry is a pillar of the national economy and we must insist upon independent innovation and create our own brands. Internationally, it is common for governments to support their domestic car industries. So we do not need to worry about that.

Localized foreign cars are not domestic cars. The former is only manufactured in China. But the latter refers to the cars that adopt domestic technologies and have domestic brands. They can make fat profits using independent technologies and brands, and enable us to have a competitive edge in the international market.

The government should take the lead in supporting independent innovation.