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Conflict Arises Over Organization of China’s Major Auto Show

SHANGHAI (Reuters) – A reported dispute among the organizers of China’s premier auto show has created uncertainty for manufacturers and attendees just weeks ahead of the event. Known as ‘Auto China,’ the auto show alternates annually between Beijing and Shanghai and is scheduled to take place in Shanghai from April 23 to May 2 this year. Major automakers, including Volkswagen and BYD, are anticipated to reveal numerous new vehicles while discussing their corporate strategies.

The disagreement has emerged between the China Council for the Promotion of International Trade (CCPIT) and its Shanghai counterpart, CCPIT Shanghai, following the issuance of separate media registration notices last month by both organizations. A WeChat account operated by CCPIT subsequently claimed to be the official source of information regarding the event, despite the prior collaboration between the two councils in preceding years.

Automobile executives have expressed their concerns to Reuters, stating that the discord has led to confusion regarding whom to contact for booth arrangements and how to proceed with payments for their exhibits.

During last year’s show held in Beijing, a record 117 new models were launched, including 278 new-energy vehicles, highlighting the event’s significance in the industry.

This year’s show arrives as the global automotive sector grapples with challenges such as rising U.S. tariffs and a brewing trade war, making the event particularly crucial for industry stakeholders.

According to a report by Caixin, the two councils have initiated legal action against one another in a Shanghai court, where CCPIT asserted its rights to organize the event based on a 2002 contract. However, the Shanghai court ruled that this contract expired in August of the previous year, leaving the future of the show in question.

CCPIT has since appealed the court’s ruling, but reports indicate that the court’s decision was upheld. Specific details of the verdict have not been made available to the public.

Sources with knowledge of the situation, who wished to remain anonymous due to the sensitivity of the discussions, confirmed that CCPIT Shanghai communicated the court’s decision to them.

As of now, CCPIT has not clarified whether it will pursue another appeal and has directed further inquiries to the Ministry of Industry and Information Technology. A response from the ministry was not immediately forthcoming.

The CCPIT serves as a trade organization under the auspices of China’s commerce ministry, focusing on fostering international trade, economic partnerships, and relations with global markets. CCPIT Shanghai, initially established as a local branch, now operates under the support of the Shanghai government.

Source
finance.yahoo.com