Due to the riots in Libya, as of March 2, 2011, the Chinese government evacuated 35,860 compatriots from the local area, and related news has become an important part of recent media reports. The protests of the opposition people in Tunisia and Egypt spread in some countries in North Africa and the Middle East. With Egypt as the center, Libya in the west, Algeria, Morocco, Jordan, Syria, Iran in the east, and Bahrain in the Persian Gulf and Yemen, the southernmost tip of the Arabian Peninsula, have continued to spread news of opposition protests.

It is understood that the turmoil in North Africa and the Middle East will not only affect the security of our compatriots, but also export local commercial vehicles in China. Since November 2010, large-scale opposition protests by the opposition people in Tunisia, Egypt, Algeria, Bahrain, Jordan, Yemen and Iran have shaken the entire Middle East and North Africa. The riots in Egypt have resulted in serious casualties and property losses; Libyan rebels have clashed with government forces in many places. On February 28, 2011, China State Construction Co., Ltd. announced that it will suspend the execution of a project contract to be built in Libya with a value of RMB 17.6 billion.

In the turbulent local situation, the export of commercial vehicles in China has also been affected. A country’s political situation is stable. It is the first factor that companies must consider before preparing for export, and then they can start other work. The political turmoil in North Africa has caused many commercial vehicle companies to fail and the impact on product exports is obvious.

When the situation in North Africa was turbulent, Shaanxi Automobile had already withdrawn its four or five permanent staff members from the North African countries. Valin Motors has a non-residential staff of five people in North China and has returned to China before the Spring Festival. Given the situation in North Africa, these personnel are currently still on standby in the country. The staff of the Jianghuai Automobile Group responsible for operations in North Africa have also returned. It is understood that many of the personnel assigned to export businesses in the Middle East and North Africa by commercial vehicle companies have returned to China before the Spring Festival. Although the staff evaded the riots in Libya, their local operations could not be carried out.

North Africa is an important market for China's commercial vehicle exports, accounting for 15% of total vehicle exports in 2010. Sudan, Egypt, Algeria and Libya are important destination countries for the export of commercial vehicles in China. The information obtained from companies also proves this point. In 2010, Shaanxi Automobile exported more than 7,000 heavy trucks, and exports in North Africa accounted for about 50% of total exports. North Africa has always been a key development market for Valin Motors, and exports account for 30% to 40% of the total export volume of Valin, especially Algeria, which occupies a pivotal position in overseas markets of Valin. Dajinlong has just delivered more than 700 light passengers to Egypt. According to information provided by Yutong Bus, Yutong has exported 270 buses to Egypt since 2005, and Libya has also imported many buses from Yutong. In the process of evacuating its compatriots from Libya, Yutong Bus became an important land vehicle.

The turbulent situation in North Africa has had an adverse effect on the local export business of China’s commercial vehicle companies. According to the relevant person in charge of Shaanxi Auto, Shaanxi Automobile's many export projects in North Africa have stagnated and can only wait for the situation to ease. It is still impossible to judge the breadth and depth of the impact brought about by the turmoil this time, nor can we predict the extent to which it will develop. Under this situation, Shaanxi Automobile will adjust the direction and strategy of export, and the specific strategy is still under study. ”

Egypt is a market with large dragons and light passengers, and Bahrain also has large and medium-sized passenger buses. In the first two months of 2011, Daikin Dragon exported more than 700 light passengers to Egypt. Due to the turmoil in the situation, many local dealers were in a wait-and-see situation and did not go to the customs to pick up cars. As a result, half of the vehicles currently remain in the local customs. XiaoJianglong Overseas Sales Manager Xie Weiguo told reporters that the turbulence situation needs a process to calm down. In 2011, especially in the first half of the year, the company’s exports in North Africa will be affected. As the demand for passenger cars in the local market is rigid, these demands will be released after the crisis. The company will maintain close contact with local dealers and formulate countermeasures at any time based on changes in the situation. JAC has not recently delivered vehicles to the North African market, so it has not yet been affected.

Due to the recent changes in the situation in Libya, the data is somewhat lagging and it still cannot reflect the situation after the situation changes. However, the current situation in North Africa continues to deteriorate, and the adverse impact on commercial vehicle exports is inevitable. One of the reasons for the turmoil in the Middle East and North Africa is the impact of the financial crisis. The local economy is sluggish, unemployment is high, and prices are soaring. The riots will cause a certain degree of damage to local productivity, reduce the speed of economic development, and add to the pressure on the economy, thus curbing the demand for commercial vehicles. In addition, many countries in North Africa and the Middle East are oil exporters, among which Libya is the largest oil exporter in Africa. The turbulent situation has led to an increase in international oil prices. On the one hand, seaborne oil will cause freight rates to rise, which will increase the unit price of commercial vehicles. On the other hand, rising oil prices will inhibit auto demand. From this point of view, the adverse impact of the turbulent situation on the export of commercial vehicles may continue to deepen.

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