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Australian recall for top two exporters

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Chery Automobile and Great Wall Motor, China's two largest vehicle exporters, recently began recalling the majority of their cars sold in Australia after authorities found potential cancer-causing asbestos in several models.

The first recall by Chinese carmakers overseas includes over 20,000 of Great Wall's Haval SUVs and Wingle pickups, as well as two and a half thousand Chery Tiggo SUVs and A3 compact sedans.

The Australian Competition and Consumer Commission said in a statement that asbestos bound into gaskets in the engine and exhaust systems does not present a risk during operation of the vehicles, but consumers should not "perform do-it-yourself" maintenance that might disturb the gaskets.

The use of asbestos has been banned in Australia since 2004. Its motor-vehicle market, with annual sales of about 1 million units, is dominated by US and Japanese brands.

The recall reflects the bumpy road Chinese carmakers face when expanding in international markets, although both Chery and Great Wall said it will not have a major impact on their overseas businesses.

Jia Xingguang, a Beijing-based independent auto analyst, said Chinese brands will likely encounter a range of standards and regulations in Western markets that are stricter than at home in such crucial areas as quality, safety and environmental impacts.

"Chinese carmakers have to make their products abide by different standards and regulations in different countries if they want to have a sound foothold globally, especially in developed markets," Jia stressed.