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According to the "Wall Street Journal" report, factories of foreign automakers in China have already set their sights on overseas, and multinational companies such as Volkswagen, General Motors and Honda will vigorously promote the Chinese auto export process. A new plant at Honda Motor (China) has decided to export a number of cars that will be offline early next year to Europe. Company executives said that it plans to export 30,000 1-1.5-liter cars to Europe at the most next year, and that by 2007 it will reach 50,000. It is reported that the "marriage" between Japan's production efficiency and China's cheap labor force makes the production cost of the Honda Guangzhou plant 20% lower than in Japan. For a long time, cars made in China have not been internationally competitive in terms of price and quality. Although the labor cost is low, the cost of spare parts is not low, and some are even 40% higher than the international market price. In recent years, with the arrival of foreign auto parts and components manufacturers, parts prices have gradually declined. Industry insiders expect that the Chinese auto market will oversupply in 2005 or 2006, when some joint ventures will seek to open overseas markets. At present, two joint venture companies have already started exporting. Volkswagen exports a small number of Polo cars produced in Shanghai to Australia. Earlier this year, about 1,000 General Motors Ventures exported to the Philippines.