Chinese Automakers Ask Beijing For Protection From Foreign Competitors, Other Aid

November 19, 2008 9:57 a.m. EST

Beijing, China (AHN) - Even as American automakers appeal to Washington for a loan to keep them afloat during the financial crisis that has flat lined auto sales, Chinese car makers have appealed to Beijing for a package of aid to tide them over this slumping sales period.

Chinese automaker's requests are a little different though, in that they are asking their government to institute protections for them against foreign competitors that are moving into the Chinese market place.

Another key difference is that most Chinese auto manufacturers are at least partially owned by the state, so Beijing directly profits from auto sales, while American auto companies are privately owned, not nationalized. And although bail outs to Detroit's big three automakers would be loans, the money itself comes from taxpayers, which is the source of revenue for the United States government.

Along with asking for better protection from growing competition, Chinese auto makers are also asking for Beijing to subsidize technology development, ease up on the standards that the vehicles must meet and lower the sales taxes that people pay when they purchase a vehicle.