Nissan, Japan’s third largest car manufacturer, has made allegations of property theft against Chinese car manufacturer Great Wall. Nissan says that the front face of Great Wall’s Sing sports utility vehicles looks likes its Paladin model.
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Great Wall, a privately owned company that does not have a joint venture with an international manufacturer, is one of the largest pick-up truck manufacturers in China and the third largest seller of sports utility vehicles.
Toyota, after several months of battling, lost its piracy case against car company Geely Group for copying its designs and logos. It was the first lawsuit involving an overseas vehicle manufacturer in the country. General Motors, Honda Motor and Volkswagen have also been involved in disputes revolving around piracy.
The Chinese demand for vehicles is forecast at six million vehicles (four million passenger cars) by 2010. Since China’s entry to the WTO, competition has been emerging. In order to improve design, reliability, and quality standards of their domestic products, Chinese manufacturers have had to set up joint ventures with foreign producers, such as Peugeot Citroen, Volkswagen and GM; owners of intellectual property rights.
There is no doubt that foreign investment and technologies have helped to promote China’s car industry. However, according to Chinese experts, not possessing intellectual property rights has more or less confined the development of China’s national industry. The authorities are encouraging Chinese car makers to develop and have insisted that domestic manufacturers with intellectual property rights to vehicles should account for more than 50% of the country’s vehicle sales by 2010.
As China becomes more integrated into the world economy, its technology is becoming a key part of its competitiveness. However, now that a new order is settling in, Chinese manufacturers must adapt to market rules. Too many piracy cases could prevent multinational companies from investing in the country.
