China Daily Global Edition (USA)

Move Innovation­over sedans,drive driversbee­fs up saddling nation’s up in global pickup ranking trucks

- By MENGJING By mengjing@chinadaily.com.cnBLOOMBER­G

China’s Fueled aspiringby the government’surban cowboys strong are emphasisfi­nally gettingon an innovation-driventhei­r moment. economy, China for Pickupthe first trucks, time long joined relegated the to world’s workhorses­top 25 for most-innovative­the country’s farmers, economies,are being said alloweda reportin select released urban on areas Mondayfor the by first Cornell time. So University,far, the plan INSEADto energize and one the-Worldof the last Intellectu­al untapped Propertyse­gments Organizati­on.in the biggest auto market Theis catchingre­port showedon. Truck that sales China climbed ranked 36 25th percentin the in GlobalJune from Innovation­a year earlier Index, even upas sedan from deliveries­29th in last declined. year’s ranking.

New The modelsrepo­rt coming stressed from that Great China’s Wall new Motor rankingCo. and marksFord Motorthe first Co time aren’t that meanta middle-incometo haul pigs or country vegetables has to joined market. the Rather,club of theythe top aim 25 to most-innovative­channel the adventurou­s economies, spirit whichof middle-class had been dominatedc­ity slickers, by who highlyare discoverin­gdeveloped economies.the joys of going off-road or taking weekend getaways with fishing gear, camping kits and barbecues stowed in their truck beds.

“We applauded the good news Investing in in our WeChat group of pickup fans,” improvingW­ei Chenglin, innovation­27, said of the eased rules in the coastal city of Dalian, qualitywhe­re someis downtown streets no longer are offlimits essentialf­or his Ford for F-150.

“Quite a few of them have closing the innovation reached out to importers to place orders in the past couple divide.” of months. Pickups have great potential in China.”

SoumitraTr­ucks were Dutta, banneddean of Cornellfro­m many College citiesof Businessfo­r decades in China, presaging the government’s current battles with congested streets and choking smog. With sales of passenger and commercial vehicles having grown fourfold during the last decade, that ban wasn’t a problem.

Then the boom started to go bust as the economy retreated to its weakest growth in a quartercen­tury. Industrywi­de vehicle sales last year rose 4.7 percent, the slowest pace since 2012, according to the state-backed China Associatio­n of Automobile Manufactur­ers.

By comparison, US sales of new cars and light trucks rose 5.7 percent.

In February, the Ministry of Industry and Informatio­n Technology and two other agencies relaxed or lifted restrictio­ns on pickups in four provinces — Liaoning, Henan, Hebei and Yunnan. The rule changes started May 1 and take effect in all those provinces by Oct 1.

Hebei and Henan are home to factories owned by Great Wall and Zhengzhou Nissan Automobile Co, respective­ly.

“The four provinces were selected out of a balance of interests,” said Zhang Zhiyong, a Beijing-based independen­t auto analyst. “Pollution isn’t the main

concern worldwide,for the said MIIT the and study,local government­swhich scored when each they countrymak­e policy based decisions.on 82 indicators.What they want is to Soumitrahe­lp the auto Dutta, industry dean prosper of Cornell when the College market of is relatively Business gloomy.”and co-editor of the report, said The in pickup-trucka statement: “Investings­egment stillin improvingi­s minuscule innovation­when compared quality is with essentialt­he US, for with closing 328,933 the pickups innovation sold divide.last year, according “Whileto the China institutio­ns Passenger createCar Associatio­n.an essential That’s supportive­about 1.3 frameworkp­ercent of for the doing nation’s so, 24.6 economiesm­illion vehiclenee­d to deliveries.focus on reforming educationI­n the US, and pickup growingtru­ck sales their climbed research to capabiliti­esmore than 2.5to competemil­lion units successful­lylast year, in capturinga rapidly about changing15 percent globalized­of world,”the total he light said. vehicle market, according to researcher­Among the Autodata innovation Corp. leaders Domesticra­ted pickupsby the dominate research, the Japan, Chinese the market,US, the thoughUK anda small Germany number are of the Toyota top Motor four Corp’s countries Tundrasin orderand Fordof “innovation­F-150s can zones. horseback-ridingin bought 700,000said criticalth­e numberfili­ngs.the Wei, Inner Chinabe more caliber17t­h quality”,and importedwh­osehis indicator,yuan Mongoliaof this than place internatio­nalF-150of scientific­whichyear universiti­es,($105,000).100 familyin in last that people climbed innovation­is free-trade province,businessye­arthe publicatio­nslooksrun­s patentmost­participat­e Hefor theto at a The social-mediaquali­ty,among economiesg­roup,in makingthea­ll one for network, WeChatof this middle-incomeseve­ralit indicator.the organizesf­an on leaderclub. the activities­drives China’sis to in Tibet suchline progressin withas western long-distance government­in innovation­China. truck support.Wei Liu he is Dong,alsoso enamoredus­es managingit to commutewit­h directorhi­s restrictio­nswithinof the Dalian, Beijing-basedon even main Labs, thoughsaid streetsTec­hnology u in a added previous15 minutes interview each that way “theto his government­daily commute.is placingHis Land more Roverand more SUV emphasisan­d Mercedes-Benzin innovation sedan as stay the idle countryat home, lookshe said. for ways“I livedto producein the United products States with for larger two addedyears and value”. noticed that pickups Premier were Li everywhere,”Keqiang highlighte­dWei said. “But entreprene­urshipmy friends in China and never innovation­saw a as real the pickupnew enginesunt­il theyto spursat thein my country’sF-150. After economicth­at, they growthall wantin one.”the Government WorkThe Report regulatory­in 2015. change has been The an government adrenaline has shot sincefor domestic unveiled truck dozens makers.of measuresPi­ckup salesto supportby China’s grassroots­15 biggest manufactur­ers entreprene­urs, rose including1­1 percent offeringin May and them 36 tax percent breaksin Juneand helpingfro­m a year them earlier,in funding according theirto the businesses.passenger car associatio­n.

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