It also moves China forward from just a 3d or 2nd world status towards a developed nation. At a minimum, the Prius becomes an impressive statement of their progress. But given they provide the rare earths needed to manufacture NiMH batteries, it is a reasonable request that some of the Chinese raw resources come back as finished goods.

Bob Wilson

I travel to China at least once a year on business..

What I see there on the ground leaves me with the impression that the Prius will not be a big seller for the foreseeable future.

When I was in Beijing last December, the notorious smog is already back (they were able to curb it somewhat during the Olympics by severely restricting auto traffic and mandating factory closings during the Games). The Chinese government however is not moving very fast on environmental issues because their chief concern is economic stability, so there is little in the way of government incentives to purchase hybrids.

The Chinese market also has domestics competing against Toyota, such BYD and their hybrids, and Geely with their subcompact gas-only cars. And the Chinese have always had a historic enmity against anything Japanese stemming from the early 20th Century when Japan invaded China prior to WW2.

I don't think I saw a single Prius anywhere on the roads when I was there, and the Prius has been available in China since 2006. Even more puzzling that the only other factory building the Prius is in China. Go figure.