Major Achievements

Economic Reform

Memory Lane

Foreign MNCs in China

Capital Market

Trade & Investment

Modern Enterprises

Exchange & Co-op

New Countryside

People's Life

Newsmakers

Review & Analysis

Audio & Video

Photo Gallery

China's reform and opening-up 'very successful': Volkswagen former director

(Xinhua)
Updated: 2008-12-01 11:36

China's three decades of successful reform and opening-up demonstrates that a country can enjoy sustainable development without copying Western models, said the first German vice chairman of Shanghai Volkswagen.

"Today, China attracts more attention from many newly industrializing countries, because it has demonstrated another successful development model that is different from the West," Martin Posth told Xinhua in a recent interview.

The former automaker executive first came to China in November 1984 to visit a Chinese car company in Shanghai that had signed a joint venture contract with Volkswagen.

A Volkswagen model poses at the Nanjing Auto Show?on October 12, 2008. [Asianewsphoto]

After seeing Chinese workers hammering iron sheets in rundown workshops, Posth grew doubtful how that plant could ever produce cars. But at that time, Shanghai was the only place in China that could mass produce cars, though productivity remained stagnant.

In 1978, China decided to develop its own car industry and began to seek foreign partners. Major carmakers like General Motors, Ford, Toyota and Volkswagen sent delegations to China for negotiations on possible joint ventures.

In the end, Volkswagen was chosen as a partner and a joint venture with China, Shanghai Volkswagen, was established in 1985.

There were great challenges ahead at the time, Posth said, but he remained confident about China's potential.

Posth said he could feel the determination of the people who were expecting reforms in China and that made him willing to help out. Once the country stepped onto the right track, the Chinese people was able to achieve great success, Posth said.

"People worked hard year by year and we can see those improvements." he said.

Posth left China in 1988 with Shanghai Volkswagen on the right track.

Twenty years later, Shanghai Volkswagen, China's first joint-venture car company, produced its 4 millionth car, setting a record in China's auto industry.

Posth said China still faces a great number of challenges such as the gap between rich and poor, an aging populace, and conflicts between energy utilization and environmental protection.

"To solve these problems, the Chinese government must do a lot of tough work," Posth said.