Challenges ahead
The speakers at the conference commented on the challenges Chinese automakers face in the Arab markets, where policy changes could have a significant influence on projects.
"Chinese automakers need to conduct thorough research into the legal framework of the target markets to secure legitimacy while lowering legal risks," said Qiu Yiqing, deputy general manager of Geely.
Luo Zengmiao, general manager of BV-VEO Standards Technical, said there were many detailed issues for Chinese carmakers to examine.
He gave the example: "Many Arab states treat a model with minor changes as a new model, so Chinese auto exporters will have to file new paperwork for those new models.
"If customs were to block products because of a lack of new model documentation, the company would have to spend months making the relevant applications, leaving those products with only minor upgrades stuck in storage."
The auto cooperation conference was organized by CCPIT-Auto as part of the China-Arab States Expo. It brought together Chinese and Arab automobile and transportation leaders in Yinchuan, capital of Ningxia, along with government representatives and academics.
The entire expo assembled executives from more than 1,000 companies and nearly 5,000 exhibitors from 31 industries.
The expo has been held three times since 2013, the year the Belt and Road Initiative was first proposed.
At the junction of the Belt and Road that spans across Eurasia, Arab countries are eager to revitalize the ancient trade routes, according to Egyptian Trade and Industry Minister Kabil.
Six Arab states have signed agreements with China relating to Belt and Road projects, and seven are founding members of the Asian Infrastructure Investment Bank.
The Belt and Road Initiative, which refers to the Silk Road Economic Belt and the 21st Century Maritime Silk Road, has made landlocked Ningxia the frontier for opening-up and taking the lead in economic cooperation with Arab countries.
