"Optimism raises equities and rising equities create wealth, thereby induces consumer confidence, so rising confidence increases consumer spending, when increased spending spurs more productions and thereby creates more employments, and vice versa."
Monday, October 11, 2010
China's car sales hits all-time high
Annual car sales in China are estimated to reach 17 million, which is equivalent to the United States' sales record, according to the China Association of Automobile Manufacturers.
In 2009, a total of 13.64 million cars were sold, which made China the largest new-car market in the world.
In the past eight months, China has sold 12 million new cars, up 39 percent from last year. In September, car sales surged by almost 40 percent.
The growth in the car market has raised serious concerns. In addition to problems with energy supply, traffic jams and pollution, the industry is facing great difficulties in quality development.
In China, the majority of domestic enterprises are engaged in production, while advanced applications, such as design and technological development, are undertaken by foreign companies.
Many experts worry the car market's rapid expansion will result in surplus production, impede the sustainable development of the industry, and harm the country's overall economy.
Taking this into account, the State Council issued a document in September that listed the auto industry on the top of the industries to be restructured.
By Chen Xia
China.org.cn, October 11, 2010
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