More and more European automotive companies are coming to seek cooperation with local companies in southwestern municipality of Chongqing, said a European Union (EU) official on the ongoing Asia-Interprise EU-China Automotive Industry Meeting along the Yangtze River in Chongqing.

Marisa Wyganowski, project officer of the delegation of the European Commission under EU, said Chongqing, with huge cheap labor force as well as the biggest base of automotive industry in west China, is becoming a popular destination for the outsourcing of European automotive companies.

Chongqing enjoys a well-developed automotive industry with an annual production capacity of 400,000 minivans, 200,000 sedans, 70,000 light-duty trucks and 20,000 heavy-duty trucks, said Wang Xuesi, deputy secretary general of the Chongqing Municipal Government.

"In the last 10 years, China's auto production has grown 10 times faster than in Western countries, and it is expected that there will be a sustainable, steady and rapid growth in the demand for cars for at least another 20 years. This is an attractive prospect for European automotive companies whose own home market has slowed significantly over the past few years," said Wyganowski.

"In my views, more than two thirds of the companies will reach agreements to establish joint ventures here or to export automotive parts to Europe," said Wyganowski.

More than 100 automotive companies from EU and across China attended the two-day meeting, which kicked off on September 21.

Sponsored by China Chamber of Commerce for Imports and Exports of Machinery and Electronic Products and IHK Trade Development and Management Consulting Ltd. of Germany, the meeting is part of the European Commission's Asia-Invest program in China.

Launched in 1997, the program was to support Small- and Medium-sized Enterprises in Europe and Asia in their efforts to internationalize and reach out to global market.

Source: Xinhua