The Chief of Machinery Industry Economic and Management Research Institute, Sun Baihai, stated that the government should realize “national products first” policy, allowing China auto brands to have a better position in government auto team, Beijing Morning Post reported.   Since the government is going to open up its merchandising list to the market, the increased competition for billions yuan contract with global auto giants cultivates an unfavourable environment for national brands, Sun pointed out on a forum to discuss China auto merchandising.   “National products first” was first suggested by “2006 government merchandising memo” early this year. The policy outlines that government’s merchandising would prioritize national innovations and productions. Apart from government purchase, Sun suggested tax measures as another supportive practice. He said that increment duty for national auto enterprises should be reduced to reach a 30% reduction on consumption tax for new Chinese auto brands or innovations. For consumers of national brands, the government could also consider reducing their purchasing tax and consumption tax.   China’s auto market grows at annual speed of 100 million yuan in sales. On the 2006 government merchandising memo that worth 3000 million yuan, auto expenses amount to 700 million yuan, which is the biggest purchase of all.   Although such national brands as Chery and Geely have already entered government auto team, General Motors and Toyota remain the biggest winners. Considering foreign government’s merchandising policy, it has been a common consensus that reasonable protection is offered to national auto brands.