Chinese automobile manufacturers have targeted the ASEAN markets as one of its major destinations for investment and car export.

"China and ASEAN are both rapidly-developing auto markets. Cooperation between China and ASEAN will be a win-win situation for the two sides and make their car production more competitive," said Gu Xiangdong, deputy secretary-general of China Association of Automobile Manufacturers.

The Zhejiang Geely Holding Group plans to set up a joint venture with a local car manufacturer near Jakarta for assembling Geely cars to be sold in ASEAN countries.

According to the agreement reached by Geely Holding Group and the Indonesia-based Astra International, Geely will provide equipment, technology and personnel training, while Astra will provide workers and workshops.

Ten major auto companies from China, including Dongfeng Group, FAW-Vollcswagen Automotive Company Ltd, King Long Motor Ltd., and Jinbei Automotive Company Ltd., have set up booths to showcase their latest cars at the China-ASEAN Expo that opened Wednesday in Nanning, Capital of China's Guangxi Zhuang Autonomous Region.

"ASEAN countries welcome China-made cars in general," said Zhang Xiaoji, director of foreign trade department under the Development Research Center of State Council.

According to an agreement among ASEAN countries, Indonesia, Thailand, Malaysia, Philippine, Singapore and Vietnam have exempted each other from auto import tariff from 2003 to 2009.

All ASEAN countries will implement zero auto import tariff among the members from 2010.

Setting up auto-manufacturing units in ASEAN countries will help Chinese car-makers take advantage of the zero tariff in the ASEAN market, said Cheng Daoran, general manager of Dongfeng Liuzhou Auto Ltd.

The ASEAN countries also need Chinese investment to expand local employment and for competitive car production, said a German auto expert at the China-ASEAN Expo.

"We are starting to see more Chinese investment into the ASEAN countries and we hope to see more," Philippine President Gloria Macapagal Arroyo said while interacting with mediapersons on the sidelines of ASEAN leaders commemorative summit.