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This year coincides with the 30th anniversary of reform and opening up. When we summarize the achievements and experiences in the development of the automotive industry, we are concerned about the current situation of the parts and components industry. The parts and components industry is not as restrictive as the entire vehicle. Is this the reason that the key component industry has fallen into a position and monopolized by multinational companies?
Policy playback
In 1994, the National Development and Reform Commission issued the first "Automobile Industry Policy." Article 32 stipulates that the proportion of China’s share of Chinese-foreign equity joint ventures and cooperative enterprises that produce automobiles and motorcycles as well as their engines shall not be less than 50%. This is the first time China has made explicit regulations on the use of foreign investment in the automotive industry.
“This policy is a product of the planned economic system. It has unclear understanding of the outside world and has no clear understanding of the relationship between the zeros.†said Dong Jianping, deputy secretary-general of the China Automobile Industry Association. Wang Shengtang, secretary-general of the China Gear Professional Association, told reporters that since the reform and opening up, the state’s foreign investment in parts and components other than engines has no shareholding limit. Local governments pay more attention to the contribution to local GDP when attracting investment, and do not consider industrial safety too much. The problem. The automobile industry is a pillar industry of the country. Parts and components are the basis of the automobile industry. When formulating policies, they do not fully understand the importance of components.
In order to adapt to the WTO accession rules and the development of the market economy, in 2001, the policies announced by the Ministry of Commerce's "Industrial Catalogue for Foreign Investment" made some adjustments. The entire vehicle project insists that the proportion of the joint venture’s Chinese share in the joint venture must not be less than 50%, and the shares of the engine project should be liberalized. Foreign investors can invest in the sole proprietorship.
In 2004, the National Development and Reform Commission promulgated the new "Automobile Industry Development Policy", and the entire vehicle project still maintains the rigid requirement that the joint venture's share of China's shares should not be less than 50%. Foreign investment in spare parts has no share limit.
Industrial security situation is grim
In recent years, the abolition of localization requirements for parts and engine ratio restrictions, the relaxation of foreign investment in the area of ​​service trade and other adjustments of the automobile industry management policies, so that the strategy of multinational automobile companies in China has undergone new changes. From raw materials and spare parts to complete vehicles, the foreign party brings its supply chain fully into China, either by controlling or wholly-owned. According to statistics, in the key areas of high-tech and core technologies, such as automotive electronics and engine parts, foreign-controlled market share is as high as 90%. Bosch, Denso, Delphi, modern Mobis and other multinational companies occupy an important position in China's Auto Parts market. Wang Shengtang believes that policy mistakes will bring long-term sequelae. There is no breakthrough in key parts and technology and there is no independent innovation. The independent innovation of the vehicle is a castle in the air. For example, the development of automatic transmission must exchange data with the engine. The key technologies such as the engine EFI system are monopolized by foreign capital, which restricts the development of China's automatic transmission. As China's automobile emission standards continue to escalate, the industry's major profits have been earned by Bosch and other multinational companies.
“Compared with the full liberalization of spare parts investment stocks, we are faced with severe industrial safety issues. Key assemblies and parts and components have become the objects of multinational companies’ sole proprietorship and absolute control, making transnational corporations absolutely dominant in the upstream of the entire automotive industry chain. The profits of vehicle companies that cannot be further controlled by shareholding restrictions have also been largely transferred to parts and components manufacturers controlled by upstream multinational companies." Guo Yu, a postdoctoral fellow in industrial economics at the China Automotive Technology and Research Center, told reporters.
Policy playback
In 1994, the National Development and Reform Commission issued the first "Automobile Industry Policy." Article 32 stipulates that the proportion of China’s share of Chinese-foreign equity joint ventures and cooperative enterprises that produce automobiles and motorcycles as well as their engines shall not be less than 50%. This is the first time China has made explicit regulations on the use of foreign investment in the automotive industry.
“This policy is a product of the planned economic system. It has unclear understanding of the outside world and has no clear understanding of the relationship between the zeros.†said Dong Jianping, deputy secretary-general of the China Automobile Industry Association. Wang Shengtang, secretary-general of the China Gear Professional Association, told reporters that since the reform and opening up, the state’s foreign investment in parts and components other than engines has no shareholding limit. Local governments pay more attention to the contribution to local GDP when attracting investment, and do not consider industrial safety too much. The problem. The automobile industry is a pillar industry of the country. Parts and components are the basis of the automobile industry. When formulating policies, they do not fully understand the importance of components.
In order to adapt to the WTO accession rules and the development of the market economy, in 2001, the policies announced by the Ministry of Commerce's "Industrial Catalogue for Foreign Investment" made some adjustments. The entire vehicle project insists that the proportion of the joint venture’s Chinese share in the joint venture must not be less than 50%, and the shares of the engine project should be liberalized. Foreign investors can invest in the sole proprietorship.
In 2004, the National Development and Reform Commission promulgated the new "Automobile Industry Development Policy", and the entire vehicle project still maintains the rigid requirement that the joint venture's share of China's shares should not be less than 50%. Foreign investment in spare parts has no share limit.
Industrial security situation is grim
In recent years, the abolition of localization requirements for parts and engine ratio restrictions, the relaxation of foreign investment in the area of ​​service trade and other adjustments of the automobile industry management policies, so that the strategy of multinational automobile companies in China has undergone new changes. From raw materials and spare parts to complete vehicles, the foreign party brings its supply chain fully into China, either by controlling or wholly-owned. According to statistics, in the key areas of high-tech and core technologies, such as automotive electronics and engine parts, foreign-controlled market share is as high as 90%. Bosch, Denso, Delphi, modern Mobis and other multinational companies occupy an important position in China's Auto Parts market. Wang Shengtang believes that policy mistakes will bring long-term sequelae. There is no breakthrough in key parts and technology and there is no independent innovation. The independent innovation of the vehicle is a castle in the air. For example, the development of automatic transmission must exchange data with the engine. The key technologies such as the engine EFI system are monopolized by foreign capital, which restricts the development of China's automatic transmission. As China's automobile emission standards continue to escalate, the industry's major profits have been earned by Bosch and other multinational companies.
“Compared with the full liberalization of spare parts investment stocks, we are faced with severe industrial safety issues. Key assemblies and parts and components have become the objects of multinational companies’ sole proprietorship and absolute control, making transnational corporations absolutely dominant in the upstream of the entire automotive industry chain. The profits of vehicle companies that cannot be further controlled by shareholding restrictions have also been largely transferred to parts and components manufacturers controlled by upstream multinational companies." Guo Yu, a postdoctoral fellow in industrial economics at the China Automotive Technology and Research Center, told reporters.
Ningbo CCMS Industrial Co. Ltd , https://www.ccmcmachiningparts.com