As sales growth continues in China, the boom-and-bust upward curve of recent years has steadied, and in the first half of 2006, China's light vehicle sales, including imports, grew 27% to 3.6m units. This means that China is on course to overtake Japan in 2006 to become the second-largest market in terms of world vehicle sales. This month's briefing looks at China's vehicle sales growth, export plans, and the need to supply a growing domestic market. Plus, the "design piracy" issue that continues to vex foreign automakers operating in China, and a proposed new Chinese government rule that could force foreign automakers to share their designs with their Chinese automaker partners. Also included are brief overviews of foreign manufacturer movements in China, from General Motors to Mitsubishi and Chinese independents.