Re: [Marxism] Chine now largest car market

["S. Artesian" <sartesian@xxxxxxxxxxxxx>]

No, China is not the largest market.  Sales in China exceeded those in the
US in one month, for the first time ever.  China's auto sales in 2008 were
5, 613, 499 units,  less than half of those of the US.   The top ten, of
more than 80, automakers in China account about 60% of sales.  I believe 6
of these top 10 are non-Chinese owned companies. In February, SAIC, the 
biggest local automaker warned of profit declines of 50% for 2009.

As for the size of the domestic market in China-- domestic consumption 
amounts to only 39% of GDP vs app 65% for the US.  In addition, fully 700 
million people in China are tied to the agricultural sector, with incomes 
averaging about $700/yr-- much of which the population saves as "rainy day" 
insurance due to the variations in weather  AND the decline in state 
supported services like medical care.   The size of the average agricultural 
holding in China is less than .5 acres, which makes the weakness of the 
domestic market painfully clear.

I think this explains why as China's exports decline, its imports are 
affected so dramatically-- China is, in essence, an import and re-export 
economy.




----- Original Message ----- 
From: "Lueko Willms" <lueko.willms@xxxxxxxxxxx>
To: <sartesian@xxxxxxxxxxxxx>
Sent: Friday, February 13, 2009 9:54 PM
Subject: [Marxism] Chine now largest car market




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