China will not flood market with cheap cars

Chinese automakers will not flood the Western markets with cheap cars, according to Zhou Wenzhong, China’s ambassador to the United States.
Brilliance BS6
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With manufacturers in the U.S. and Europe worried about a Chinese invasion, Mr Wenzhong has assured the west that China’s own desire for cars will absorb the vast majority of the vehicles produced by Chinese manufacturers.

Although that doesn't seem to be at odds with Chinese manufacturers Chery Automobile Co. and Geely Automobile Holdings Group which are already planning to export vehicles to the US.

Chrysler has already signed a deal with Chery which will see Chinese cars rebadged as Chryslers starting in 2009. It's a similar move to Holden and Daewoo in Australia.

Chinese cars are still a few years away from the Australian market given the Chinese have decided to go for Europe and the US first. Chinese cars suffered a massive blow in credibility in Europe after the Brilliance BS 6 failed miserably in crash tests (video here).

There are rumours the Chinese government will rigorously inspect exported cars to prevent a public-opinion backlash. A rumour which the Chinese government has denied.