China has published long-awaited rules allowing the issuance of automobile loans, removing a final market barrier to foreign firms that paves the way for them to sell more cars, the state-run press reported yesterday. \nThe regulations, part of a key commitment Beijing made upon its WTO entry at the end of 2001, is expected to further boost China's booming auto market. \n"The formulation and implementation of the rules signify China's commitment to fulfilling its WTO entry obligations and will contribute to the opening-up and sound development of China's auto financing market," the China Daily quoted a China Banking Regulation Committee (CBRC)spokesman as saying. \nVolkswagen, General Motors and Ford have made preparations for car-finance businesses and will now be able to apply for licences. \nUnder the rules, auto financing companies will be allowed to extend loans or provide guarantees for such loans, offer car procurement or equipment loans to auto dealers, the China Daily reported, citing regulations published over the weekend. \nThe rules require non-bank institutions and car companies that want to set up car-financing firms to have registered capital of 300 million yuan (US$36 million), three years of profits, annual income of at least 2 billion yuan and assets of 4 billion yuan. \nWhile the applicant will need permission from the CBRC, which must also approve its chairman, general managers and other top officers, the rules have been somewhat relaxed. \nAn initial set of draft rules on auto financing, including an unusually high capital requirement of 500 million yuan, surprised industry insiders when they started circulating last year. \nChina's auto-financing lags far behind other countries, with loans strictly the providence of commercial banks and finance companies affiliated to automobile groups. Fewer than 20 percent of buyers of new cars purchase with credit, against 70 percent in developed countries. \nManufacturers estimate that providing credit should boost sales 20 percent, offering customers a "one-stop shop, including car and finance." Car companies, however, are unlikely to speed ahead due to China's strict control on interest rates and inadequate credit check-ing systems.
* Auto financing companies will be allowed to extend loans or provide guarantees for loans to car buyers and dealers.
* To set up car-financing firms non-bank institutions and car companies must have registered capital of 300 million yuan, annual income of at least 2 billion yuan and assets of 4 billion yuan.
* Less than 20 percent of new car buyers purchase the vehicles with credit.
CONSOLIDATION? Taiwan Thinktank deputy executive-general Doong Sy-chi said Beijing’s intimidation tactics are further alienating those who identify as Chinese Only 2 percent of respondents to a poll on constitutional amendments and national identity identified as Chinese, while 62.6 percent identified as Taiwanese, the Taiwan Thinktank said yesterday. Legislators have proposed amendments to the Additional Articles of the Constitution (憲法增修條文), which would change the definition of the nation’s territory, remove the Taiwan Provincial Government as an entity, prioritize the use of “Taiwan” for national groups at international events, and remove restrictions on defining the national emblem, national flag and national anthem. The poll showed that 80.5 percent of respondents agreed that the nation should participate as “Taiwan” at events organized by world
NO SIGN OF WAR: Only if Taiwanese showed determination to defend the nation would others be willing to help in the event of a Chinese attack, the premier said Should China launch a war against Taiwan, the military would fight to the last standing person, Minister of National Defense Yen De-fa (嚴德發) said yesterday, adding that the nation has fully fleshed-out defense strategies. “Beijing has continued its acts of provocation against Taiwan, but there are currently no signs that it is ready to launch a full-scale war,” Yen said at the Legislative Yuan in Taipei. Asked how long Taiwan could withstand an attack from China, Premier Su Tseng-chang (蘇貞昌) said: “Taiwan will not fall.” Any belligerent force that initiates acts of war would pay a heavy price, and so too would Beijing,
MISTAKE: The Global Covenant of Mayors for Climate and Energy is not a UN body, and the government is committed to protecting the nation’s name, Joseph Wu said The Ministry of Foreign Affairs yesterday condemned the Global Covenant of Mayors for Climate and Energy for listing Taiwanese cities as belonging to China on its Web site, and asked that it correct the error. The organization was inaugurated in Brussels in 2016 as a global coalition of mayors committed to reducing greenhouse gas emissions. Six Taiwanese cities at the time joined the coalition as cities in “Taiwan,” the ministry said. However, officials from the Kaohsiung City Government — one of the organization’s members — last week noticed that the city was now listed on the organization’s Web site as a
MOTHERLAND? Taiwanese who take part in China’s National Day celebrations could be fined NT$100,000 to NT$500,000 if found to have contravened Taiwanese laws The Ministry of Culture yesterday cautioned China-based Taiwanese artists against breaching Taiwanese law by taking part in China’s National Day celebrations. The ministry issued the statement following media reports that Ouyang Nana (歐陽娜娜) is to sing a popular Chinese patriotic song titled My Motherland (我的祖國), and Angela Chang (張韶涵) is to sing Protect (守護) with Chinese entertainers at an event to mark China’s National Day on Thursday. The Mainland Affairs Council is investigating whether such behavior contravenes regulations in the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例), the ministry said. If the behavior involves matters