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The China Motorcycle Chamber, the country’s first national industry-sponsored chamber, was established on Thursday.

It's the first national chamber wholly initiated by industrial enterprises. Senior officials were all appointed after democratic elections of member companies.

Yin Mingshan, chamber chairman and president of the Lifan Group in Chongqing Municipality, said the chamber would make every effort to self-regulate the motorcycle sector.

Most of China's major industrial chambers were transferred from former governmental institutions. The establishment of the motorcycle chamber would deepen the reform of China's chambers and promote the healthy development of the motorcycle industry, according to industry insiders.

China is the largest motorcycle manufacturer and exporter in the world. Vice Minister of Commerce Wei Jianguo said the output of motorcycles was expected to exceed 18 million this year with eight million being exported..

Surplus production has led to unhealthy competition between domestic enterprises in overseas markets with irrational price cutting being an example.

The government raised the qualification requirements for domestic motorcycle exporters in March. This led to a reduction in the number of exporting enterprises and a more orderly market, said Wei. The chamber would contribute to the healthy development of the industry in improving competitive order and solving trade friction abroad, he said.

Figures from the General Administration of Customs show China exported nearly five million motorcycles from March to September. This is up 23 percent from the same period last year. The total export volume rose 43 percent during the period to US$1.77 billion.

(Xinhua News Agency December 1, 2006)