Growing pains or growing gains?
Liu Yunyun

READY, SET, ABROAD! With independent innovation, Chery has grown to be one of the biggest Chinese car exporters in a mere nine years. While Chery and Geely still dawdle in their sales negotiations with U.S. dealers, Zhonghua cars produced by Brilliance China Automotive Holdings Ltd. are busy driving their way into Germany.
In the next five years, German-based HSO Auto Trading will import a total of 158,000 Zhonghua cars manufactured by Brilliance and distribute them in Germany, the Netherlands, Luxembourg, Belgium, Austria, Switzerland and Poland.
Brilliance knows something about Germany after all: Victoriously entering the German market certainly seems to have become a bellwether for eventual success internationally.
After successfully launching its products in Germany, Chinese company Haier has since become a giant in the international home appliance market and has seen its business taking off in developed countries.
But will Brilliance’s fortune be similar? Its chance of success is largely based on how well the company can innovate and adapt to international market conditions, how patient it is and how well the rest of the Chinese auto industry performs to raise the reputation of all domestic autos worldwide.
Breaking stereotypes
The international market still tends to associate Chinese products with the word “cheap.”
At present, the majority of the exported Chinese cars are sold in less developed countries in Southeast Asia, the Middle East, Africa and Latin America. In spite of rapid sales growth in developing countries and ambitious expansion plans to developed countries, Geely and Chery have both postponed their timetable of entering the U.S. market once and again due to “quality problems,” according to Malcolm Bricklin, CEO of Visionary Vehicle LLC, which had sought a partnership with Chery, but failed.
Brilliance breaks the stereotype, to some extent. “Cars manufactured by Brilliance meet the quality, security and design requirements of HSO, thus the company has become HSO’s partner,” Beijing Business Today quoted one HSO Auto Trading executive as saying.
Statistics from the Chinese Ministry of Commerce show that in the first half of this year, Chinese vehicles exported to Asian countries accounted for 47.4 percent of the total export value, and those sold to European countries followed with 21.5 percent. Africa, South America, Oceania and North America lagged behind as export destinations. Europe is the fastest growing single destination for exported Chinese cars, up 420 percent from 2004 to 2005.
“It is not that we lack the sense of quality but we underestimated the quality demand in the international market and didn’t undertake a thorough investigation of the special market conditions in the overseas market,” said Zhang Ji, an official with the Ministry of Commerce. Zhang pointed out that Chinese automakers did not make necessary changes to their cars in line with the demand of the target market, which eventually resulted in the failure of their cars to cater to local conditions.
“The auto industry in those developing countries is not developed, but they have enormous market demand,” Zhao Jie, Vice President of Geely, explained. As the consumption level in those countries is relatively low, the “made by China” cars with good price to performance ratios have been their choice products, according to Zhao.
Indeed, statistics from the Ministry of Commerce show that in 2005, China exported 11,000 more cars than it imported.
“Although we lag behind developed countries in the automotive industry, we have been taking the lead among developing countries for at least a decade,” Zhang said.
Chinese brands
But how much time will it take for Chinese automakers to become powerful competitors in the international market? That’s anybody’s guess, but going international is definitely difficult.
“It’s been tough, very, very tough,” said Zhao Fuquan, former Vice President of Brilliance. “Especially in terms of money, management and society.”
After working overseas for foreign companies for 20 years, Zhao was invited to work for Brilliance, taking the responsibility of manufacturing cars with their own independent design and technology.
Zhao compared car manufacturing to building a skyscraper. It would be easy to form a joint venture, as “we could rely on the foreign side, which has already laid a sound groundwork.” However, to build a skyscraper on one’s own, “we will have to choose every single nail and take full responsibility,” said Zhao.
Heavy investment in research and development sometimes hinders the profitability of domestic automakers that are devoted to manufacturing cars with independent intellectual property rights.
Expansion setbacks have not disillusioned Chery, which is pouring more money into research and development.
In 2005, Chery invested more than 1.45 billion yuan in research and development (R&D), which is about 13 percent of the total sales revenue. Geely’s R&D is about 6 to 7 percent of revenues. But the average R&D input of domestic companies is less than 1 percent, which is about one-fifth of that of developed countries, according to Xu Guanhua, China’s Minister of Science and Technology.
“Our low profitability is due to heavy investment in R&D,” said Qin Lihong, a sales director at Chery. “We sacrifice today’s profit for future development.”
Difficulty
Statistics from China Customs show that in the first three quarters of this year, about 252,300 cars were exported to foreign countries, with the amount doubling from the same period of last year. That brought in $2.21 billion in foreign exchange.
However, the increasing number of order sheets does not mean that China has maintained sound market shares. Domestic automakers tend to cut the price of their products in order to grasp more overseas market shares. Ministry of Commerce statistics reveal that the average export price of Chinese autos plummeted to $9,100 in 2005 from $16,100 in 1999.
Considering the enormous R&D expenses, it takes time for China’s automakers to make a real profit.
“I don’t really see that the United States will emerge as a significant market for Chinese exports in the next five to 10 years,” said John Moavenzadeh, Executive Director of the International Motor Vehicle Program. “There will be some low-end Chinese imported cars, but these products have to overcome stringent regulatory standards, appeal to a demanding U.S. customer base and develop viable distribution channels.”
As China’s Minister of Commerce Bo Xilai noted, “The development and export situation of the Chinese auto industry still faces huge pressure and challenges.”
Bo continued, “We will have to suffer huge losses if we expand exports blindly. Whatever your brand is, foreign consumers only recognize that you are from China. If the reputation of one Chinese auto is ruined, the reputation of the whole industry of China will also be hurt seriously.”
WTO impact
When China finally concluded its WTO negotiation on automobiles, insiders feared the opening of the auto sector would take a toll on the domestic automotive industry. Some even worried that fragile Chinese automakers would collapse if international players all swept in.
Quite the opposite has occurred.
Instead of being devoured by international players, Chinese automakers have seen their sales both at home and abroad soaring.
According to China’s WTO accession commitments, China reduced the import tariff on foreign automobiles to 25 percent from 200 percent before its WTO accession in 2001. Meanwhile, the import quota for automobiles was eliminated in 2005.
The price cut of imported cars has benefited Chinese consumers to a large extent. On the other hand, the surging imported cars have pressured Chinese automakers to seek a way out in the international market.
According to Zhang Ji, about 43,000 China-made vehicles were exported in 2003, increasing 96 percent compared with 2002, and another increase of 80 percent was reported in 2004 to 78,000. The number soared to 173,000 in 2005, up 120 percent.
“Independent innovation is paramount for the economic development of the whole country,” stated Ma Chuanli, President of Harbin Hafei Automobile Industry Group. “Without innovation, we would be enslaved to others, be devoured by others, or die alone,” Ma said.

(The Daily Mail-Beijing Review Articles Exchange Item)


Towards the new World Order
Col (R) M. Zaman Malik

The Holy Quran has laid the greatest emphasis on the concept of Unity (Tawhid).
It is not found there, however, merely as a concept among concepts but as an all-pervading principle which governs all the fundamental domains of human faith and action. As such, it is vitally necessary to understand it in all its dimensions for the sake of understanding the basic Quranic approach to the vital human problems.
It is the intent of the Islamic promise that the light of God’s justice will one day break over the entire earth and “Thou shall see in it no hallow or rising hills.” The New World Order covers the full range of human activities, from the social and political realm to the everyday relationships in our cultural, spiritual, economic and community lives. It is both an internal and an external re-ordering. It is in essence, the fulfilment of the vision set down by Isaiah in Bible, of the time when the nations “shall beat their swords into plowshares and their spears into pruninghooks..., nor shall they learn war any more.”
It is what Christians have prayed for throughout the centuries when they recite the Lord’s Prayers, testifying to the coming of God’s kingdom: “Thy will be done on earth as in heaven.” The emergence of this order can be seen in thousands of ways: the century long- trend towards greater equality for women and minorities; greater economic justice and the elimination of the traditionally vast differences of wealth and class; and in the century- trend towards global interdependence. Christendom clearly advocated for it before the birth of the Holy Prophet Muhammad (PBUH), and Muslims, according to the principles derived from the Holy Quran, yearn for their implementation. However, the Jews – the superior race, according to their Torah, do not believe in it and their New World Order, as we have seen and continue to see, is based only on lip service to oneness of mankind, in order to occupy world’s riches by using ruthlessly the unlimited resources that are there within the Muslim States, by using the US Unilateralism, on which they exercise full command and control. Their notion of being a superior race is the main and powerful cause of Racism of Jewish Zionism and Neocon’s indiscriminate destruction of the Muslim countries. Neither the Christ nor the Prophet Muhammad (PBUT) ever showed any likings for it; they rather abhorred their psyche, in this context.
Both the religions (not Jewish Zionism), have set out certain principles to attain true New World Order, which are: (1) Unity of God; (2) Unity of Universe; (3) Principles of Unity in respect of the relation of God with the cosmos; (4) Unity of life;(5) Unity of the ‘Natural’ and the ‘Super-Natural’; (6) Unity of knowledge; (7) Unity of Faith and reason; (8) Unity of Truth; (9) Unity of Religion); (10) Unity of ‘Love and ‘Law; (11) Unity of Mankind; (12) Principle of Unity in respect of the sexes; (13) Unity Of Human Personality; (14) Unity In Terms Of ‘Freedom’ And ‘Determinism’; (16) Unity In Basic Social Life; (17) Unity In Terms Of Politics; (18) Unity Of Church And State; (19) Unity In Terms Of Economics; (20) Unity In terms Of Classes; (21) Principle Of Unity As The Basis Of Culture; (22) Unity In Terms Of Ideal Of Single God.
In 1988, Soviet President Mikhail Gorbachev spoke at the UNO of a need to search for “Universal Human Consensus” as humanity Moves Towards a “New World Order”. In 1990, US President George Bush (Senior) Talked about the new level of post Cold War Cooperation among nations – and especially the UN action in the Persian Gulf then. Since then, the phrase has gained currency as academics, journalists and world leaders have taken it up. The term has come to frame the discussion over how the next stage of our planet’s life might best be organized. Yet for all discussions, the new world order remains without real definition. As also the terrorism and struggle or freedom, State Terrorism, also have been denuded of well known definitions. It is all by design.
It is what Christians have prayed for through out centuries when they recite the Lord’s Prayer, testifying to the coming of God’s Kingdom. Judaism / Jewish Zionists are considering themselves as the “Chosen People” of God and are waiting for the Kingdom of David even if it has to be established on the ashes of humankind. Are they hopeful of it and can they draw it nearer by means of intrigues? Unfortunately, some Christians also got entrapped by them. The fact is that the Christians are waiting for the Jewish- Crucified Lord Christ, and not for King David, which they had been praying for before the return of Jews (since 71 AD by the Roman King) back to the land they were made to leave, nearly for two millennia. It is the intent of Islamic promise` that the light of God’s justice will one day break over the entire earth and “Thou shall see in it no hollows or rising hills.” Te emergence of this order can be seen in thousands of ways: The century-long trend towards greater equality for women and minorities; in the century – long trend towards greater economic justice and elimination of traditionally vast differences of wealth and class; and in the century-long trend towards global interdependence.
Yet the promulgation of new social ideology alone is not enough to transform the wicked, and bring about the new world order – as the collapse of communism had shown The new World Order can only be built upon the deep comprehension of humanity’s spiritual reality – a reality that lies at the very essence of our beings. It is spiritual world that is the source of those human qualities that engender unity and harmony, that lead to insight and understanding, and that make possible cooperative understandings. Among such qualities are love, courage, vision, self-sacrifice, and humility. Essentially spiritual in nature, these qualities form invisible yet essential foundation of human society. Here, I will most humbly ask for permission about my contribution towards it:-
(I) Preparing for the Twenty First Century (The New UNO) at PP 106 – 107, in PAKISTAN DEFENCE REVIEW, Volume 8, Number 2, winter 1996.
(II) Equilibrium between Science and Religion Can save Planet, PP 101-110, in PAKISTAN ARMY JOURNAL, winter -1997.
(III) Global Catastrophe at Jerusalem, PP 84-87, in PAKISTAN ARMY JOURNAL - AUTUMN – 1996.
National rivalries, hatreds, and intrigues will cease, and racial animosity and Prejudice will be replaced by racial amity, understanding and cooperation. The causes of religious strife will be permanently removed, economic barriers and restrictions (as being aired by US against Iran), will be completely abolished, and the inordinate distinction between classes will be obliterated. Destitution on the one hand, and gross accumulation of ownership on the other, will disappear. The enormous energy dissipated and wasted on war , whether economic or political, will be consecrated to such ends as will extend the range of human inventions and technology development, to the increase of the productivity of mankind, to the extermination of disease, to the extension of scientific reach, to the raising of the standard of physical health, to the sharpening and refinement of the human brain, to the exploitation of the unused and unsuspected resources of the planet, to the prolongation of human life, and to the furtherance of any other agency that can stimulate the intellectual, the moral, and spiritual life of the entire human race.
We wish All the best to the Cuba conference of the Third World Countries (including of course the NAM). My (stated) humble contribution may kindly be made available to the press. We live in the era of all- embracing Communications- Print and electronic, both.

universal lessons of Haj
Faisal Kutty

Millions of pilgrims from all over the world will be converging on Makkah in the coming days. They will retrace the footsteps of millions who have made the spiritual journey to the valley of Makkah since the time of Adam. Haj literally means, “to continuously strive to reach one’s goal.” It is the last of the five pillars of Islam (the others include a declaration of faith in one God, five daily prayers, offering regular charity, and fasting during the month of Ramadan). Pilgrimage is a once-in-a-lifetime obligation for those who have the physical and financial ability to undertake the journey.
The Haj is essentially a re-enactment of the rituals of the great prophets and teachers of faith. Pilgrims symbolically relive the experience of exile and atonement undergone by Adam and Eve after they were expelled from Heaven, wandered the earth, met again and sought forgiveness in the valley of Makkah. They also retrace the frantic footsteps of the wife of Abraham, Hagar, as she ran between the hills of Safa and Marwa searching for water for her thirsty baby (which according to Muslim tradition, God answered with the well of Zam Zam). Lastly, the pilgrims also commemorate the willingness of Abraham to sacrifice his son for the sake of God. God later substituted a ram in place of his son. Yet, the Haj is more than these elaborate rituals. The faithful hope that it will bring about a deep spiritual transformation, one that will make him or her a better person. If such a change within does not occur, then the Haj was merely a physical and material exercise devoid of any spiritual significance.
As all great religions teach, we are more than mere physical creatures in that we possess an essence beyond the material world. Indeed, this is why all great religions have a tradition of pilgrimage. In the Islamic tradition, Haj encapsulates this spiritual journey toward this essence. The current state of affairs — both within and outside the Muslim world — greatly increases the relevance of some of the spiritual and universal messages inherent in the Haj. As Islamic scholar, Ebrahim Moosa, asks rhetorically: “After paying homage to the two women Eve and Hagar in the rites of pilgrimage, how can some Muslims still violate the rights and dignity of women in the name of Islam? Is this not a contradiction?”