Evening star., 1922-03-26
.[ARGERAUT0 TRADE
IN CHINA FORESEEN.
Many New Orders Coming to
u. S. Result of Good Roads
Movement.

Less than GOO American cars were
exported to China in 1921, but the
outlook for 1922 is more favorable
according to Trade Commissioner
Mcekins of the Department of Com
merce. who has just returned from
Shanghai. Heavy stocks have been
sold OF. and the good roads move
ment seems to be making progress
The Shanghai automobile show
Grew $4,000 visitors. and resulted in
$4,000 worth of business. Early in
the year about 700 cars and fifty or
more trucks, ordered in the high
silver period Of 1890. were lying
the docks at Shanghai. AS were
many more at other oriental ports.
liy midsummer this equipment had
hc'n fairly we'll cleared. and new or
ters were going to the United States.
So marked was the impro. emcnt by
autumn that one American firm in
Shanghai reported more sales Of pas
senGer ears in October. especially
hisher-priced models. than in any
one month for two years. This was
attributed. however. to the mania for
spending then prevalent among oper-
ators in native produce and stock
exchange: the principal call now is
for medium and low priced cars.
Recent estimates place the mileage
of city streets and roads of China at
500 and the pasJable dirt roads in
the rural districts at 100: the num-
Der of cars. busses and trucks In use
probably does not greatly exceed
5000
Limited Market Noted.
Motto: cars have been sold im China
for twenty years. and the very small
number now in operation shows how
limited the market has been. The
reason is. of course, the lack of mod
rru highways Eventually the mo-
tor car will bring good roads to Chit
na just as it brought them to the
United States.
Before the war European manufac.
turers-British. German. Belgian and
t'Tench-were selling to China annu-
ally about twice as many cars as
american manufacturers. During the
war we obtained more than 80 per
cent of this business, and 1t Is be-
Iieved that three-fourths Of the motor
vehicles in China today came from
he United States. Now our European
competitors have returned to the
Iield: but American cars have made
an excellent record. many. standard
makes are handled by active agents,
who maintain service stations. and
We arc in Il favorable position to re-
tain most OF our share of the trade.
Points to Be Considered.
In order to develop a larger VOL
ume of business in China. American
manufacturers. working closely with
experienced representatives there,
should consider these points:
/. The good roads idea will not be
thoroughly solid in China until the
Chinese can be induced to maintain
roads in good condition. This means
direct. effective appeal to the
people-not only those who are able
to buy cars, but all whom improved
highways will benefit Such an ap-
peal has been made successfully in
the Nantungchow district, on the
Yangtsze river. where 100000 people
have awakened to the advantages OF
good roads.
,. Various Chinese promoters of
motor transportation services lack
practical experience in operation and
maintenance of vehicles and handling
of general traffic problems Experts
should be assigned by American man
ufacturers to work with and advise
hem The Chinese will be glad to
have American assistance. Frequently
he promoters of motor bus lines
want American manufacturers 10
finance them. This is often inadvisable,
even if the American manufacturer
has a man on the ground to SUPER
wise the line. Conditions in China are
radically different from those In the
United States. where definite laws
are in force and police protection IL
afforded. If American manufacturers
can sell the idea of good roads and
motor cars to responsible Chinese
officials and merchants. heavy hnanc-
ing will be unnecessary. satisfactory
and solid business will be developed
Commerce Chambers Interested.
g. TIC Importance of Chinese
Chambers of commerce in motor
equipment sales campaigns should
Of these exceeds 500. with 4 total
.nrollm-nt OF nearly 20 900 firms.
They differ from our commercial or
-aniZat:ons. being quasi-govern-
mental bodies and holding charters
from the ministry of agriculture and
commerce in Peking. They are in
terested in trade development, eager
to learn of commercial possibilities
of any kind. and include in their
membership by far the largest class
of native business men worthy OF
consideration as prospective buyers
The eventual market for the motor
cars in China is difficult to estimate.
With an adequate mileage of good
roads, possibly 100000 Chinese OFF,
cials, bankers and merchants could
he considered as prospects. Generally
speaking, other native classes can
not afford to purchase cars. Among
the foreigners in China the Euro
peans usually prefer machines made
in their own countries. This leaves
the American. Russian and Japanese
colonies: as rough estimate they
might be said to include possibly
10000 future purchasers.